New guidelines aim to prioritize borrower protection and curb deceptive marketing tactics in the digital lending sector.
In a bid to safeguard borrower interests and promote ethical conduct within the digital lending sector, the Securities and Exchange Commission of Pakistan (SECP) has rolled out comprehensive guidelines for Non-banking financial companies (NBFCs) engaged in digital lending activities.
The guidelines, as outlined in a recent press release by the SECP, are meticulously designed to prevent deceptive marketing strategies and unethical practices within call centre operations. With NBFCs actively promoting loan products across various social media platforms, the need for stringent regulations to safeguard consumers’ interests has become increasingly imperative.
Given the reliance of digital lending NBFCs on call centre infrastructure for tasks such as verification, recovery collection, and customer service, the SECP underscores the importance of responsible and ethical behavior in all facets of their operations. This includes transparent and honest advertising practices, as well as ensuring that these standards are upheld by call centre services, whether in-house or outsourced.
The guidelines, deemed essential for promoting transparency and integrity within the digital lending landscape, are set to assist NBFCs in adopting best practices in both advertising and call centre management. Moreover, they are poised to fortify borrower safeguards and instill confidence in the digital lending ecosystem.
All NBFCs engaged in digital lending activities are mandated to adhere to these guidelines across all marketing channels, encompassing influencers, content creators, and call centre services, both in-house and outsourced.
The implementation of these guidelines signifies a concerted effort by the SECP to foster a fair and transparent digital lending environment, where borrower protection remains paramount amidst the rapid expansion of the sector.
