Lahore: The Securities and Exchange Commission of Pakistan (SECP) on Monday (May 30) launched a Digital Lending project for the Non-Banking Finance Companies (NBFCs), news sources reported.
Under the project, NBFCs would be able to finance projects using remote technologies and computer-aided systems for loan application processing. The SECP notified the project under S.R.O.603(I)/2022.
According to the SECP, the initiative would use digital, technology-based, or internet-based channels or instruments with little or no human involvement for processing loan applications, approval, payout, and repayment. The following are the provisions of the notification:
Lending NBFCs shall comply with such requirements as may be specified by the Commission through a circular, for all or a specific class of lending NBFCs, including but not limited to the digital lending;
Adequate and accurate disclosures, including but not limited to the offered products, services, and applicable terms and conditions, to borrowers, customers and other stakeholders;
Minimum disclosure requirements for digital applications, websites and any other platform used by the NBFCs for the licensed activity;
information technology, systems and information security measures.
Furthermore, the notice emphasised the notion of “Robo Advisor,” which will be an automated, algorithm-based client-facing product with little or no human adviser engagement in the advisory process. Platforms such as artificial intelligence (AI) will also be employed for market study and evaluation.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
