CBC Becomes the First Company to Obtain SECP Approval for Micro Finance Company Lending App

The Non-Banking Finance Sector of Pakistan has been revolutionized with the approval of the first-ever digital micro-lending app by the Center of Business Consultancy (CBC) (Pvt.) Limited. CBC has become a pioneer company in the NBFC sector by obtaining approval from the SECP (securities and exchange commission of Pakistan) to launch a digital lending app for its foreign client. In Pakistan, traditional commercial banks often do not offer small loans of PKR 10,000-50,000 to customers. Furthermore, obtaining a loan from a bank can be a time-consuming process for citizens. To address this gap, microloan apps have emerged as a convenient and user-friendly solution. These apps provide quick and easy access to micro-loans, with the added benefit of a straightforward application process.

However, a significant number of these loan apps have been found to be fraudulent, with some even engaging in spying activities to gather personal data from their users. To tackle the issue, the Securities and Exchange Commission of Pakistan issued a circular on December 27, 2022.

SECP Circular:

According to the circular, all the lending companies have been advised by the SECP to conduct the app security audit from PTA approved cyber security audit firm. Afterward, they have to register their platforms with SECP. These rules apply to all companies whether they were launched before the circular or after it. The deadline for compliance is 27th March 2023 and the companies who fail to comply will be banned from the Google Play store.

The new regulatory regime ensures transparency and regulation of digital lending practices, and it is a significant development in the industry. Previously, NBFCs were not required to seek approval from the Commission to launch digital lending applications.

Center of Business Consultancy (Pvt.) Limited Sets a Benchmark for Other Companies:

The approval of the first-ever digital lending app by The Center of Business Consultancy (Pvt.) Limited is a game-changer for the Non-Banking Finance Sector of Pakistan. The new regulatory regime provides a level playing field for all players in the industry. The Center of Business Consultancy (Pvt.) Limited has demonstrated its commitment to excellence and innovation and has set a new standard for the industry to follow.

The Center of Business Consultancy (Pvt.) Limited has achieved an unprecedented and unbeatable milestone in the industry, and it is a testament to the company’s commitment to excellence and innovation. This achievement highlights the company’s expertise and proficiency in the industry. The company would like to express its appreciation to the Policy, Regulation, and Development Department of the Specialized Companies Division of the SECP for their valuable support in the NBFC sector.

Check out? Google to Ban Unlicensed Micro Lending Apps: SECP