In pursuance of its reform agenda to help and foster the country’s Fintech movement, the Securities and Exchange Commission of Pakistan (SECP) has granted approval for the launch of Pakistan’s first Peer-to-Peer (P2P) Lending Site.
Under the first cohort of SECP’s Regulatory Sandbox Finja, the venture capital-backed fintech, obtained clearance.
Finja organized an exclusive event on Wednesday, to highlight the effects of P2P lending and technology’s potential for efficient credit disbursement and expanding financial inclusion. Aamir Khan, the chairman of the SECP was the Chief Guest.
Speaking at the event, Aamir Khan said that the SECP has put a major emphasis on serving micro, small and medium-sized enterprises (MSMEs) because they play a vital role in any country’s economic growth.
SECP has already operationalized the Safe Transaction Registry (STR) which went live on 30 April 2020, in order to improve access to finance for MSMEs, agri-borrowers and rural enterprises.
Till date, there have been more than 125,000 security interests registered in the registry. This has made it possible for small companies to secure loans for their movable assets.
Similarly, SECP focuses on simplifying the structure of private equity and venture capital (PE&VC) to ensure high growth and knowledge-based stabilization.
The most important measure of the SECP, however, was the implementation of the regulatory sandbox, in which the first cohort accepted six concepts.
This programme will inspire entrepreneurs and companies to strive and implement new ideas and, in the process, to serve and expand financial inclusion for end-users.
A new Finja Lending Services (FLS) entity has been launched by Finja, the dual-regulated new-age fintech, with a focus on providing digital credit to micro-small and medium-sized enterprises (MSMEs) and the people they employ.
So far, Finja has used its patented machine learning and artificial intelligence-led algorithms and analytics to digitally process loans with a throughput of $10 million to MSMEs and their employees.
These loans are digitally disbursed and processed, removing heavy-cash, time and cost-intensive procedures.
