The Securities and Exchange Commission of Pakistan (SECP) has approved the first Peer-to-Peer (P2P) Lending Service Provider in the country. Finja Lending Services Limited (FLSL), operating under the name “Finja Invest,” has received approval after undergoing rigorous testing in SECP’s Regulatory Sandbox.
SECP’s comprehensive evaluation process assessed Finja Invest’s adherence to regulatory guidelines, risk management protocols, data protection measures, and overall operational efficiency. This approval signifies a significant achievement for Pakistan’s financial sector, as it embraces digital transformation and promotes sustainable development.
To facilitate the growth of P2P lending, SECP had earlier introduced a regulatory framework within the existing Non-Banking Finance Companies (NBFC) Regulations of 2008. This framework enables P2P service providers to operate transparently, securely, and in compliance with regulatory standards, fostering trust and confidence among investors and borrowers.
SECP recognizes the importance of P2P lending as an alternative financing option that empowers individuals and small businesses. P2P lending platforms offer various benefits to the financial ecosystem, including improved accessibility to financial services and bridging the gap between borrowers and lenders.
The approval of Finja Invest demonstrates SECP’s commitment to creating an environment that encourages technological advancements while upholding robust regulatory standards. This development is expected to pave the way for further innovation and growth in the P2P lending sector in Pakistan.