Google Play has announced the implementation of new screening criteria for Digital Lending Apps (DLAs) in an effort to safeguard Pakistani consumers from fraudulent and unregistered lending apps.
The policy stipulates that Non-Banking Finance Company (NBFC) lenders are only permitted to launch one Digital Lending App beginning on May 31, 2023. The developer account and any related accounts will be terminated for any attempt to publish more than one DLA.
Personal loan app creators must now fill out the Personal Loan App Declaration form and submit the proper paperwork before their app can be published if it targets customers in Pakistan. Furthermore, in order to provide or facilitate digital lending services in Pakistan, documentation of clearance from the Securities and Exchange Commission of Pakistan (SECP) is necessary.
Google Play may ask lending apps for further information or documentation to confirm compliance with any applicable regulatory and licensing requirements. The personal loan app will be removed from the Play Store if these conditions are not met. Developers are obligated to immediately withdraw their program from the Google Play Store if the provided license, registration, or declaration is found to be ineligible under the relevant legal provisions.
Farhan S. Qureshi, Google’s Director for Pakistan, stressed that the new, strict guidelines for digital lending apps are intended to lower financial risk and protect user data. It is anticipated that these steps will give users an extra layer of security.
DLAs are not permitted to access sensitive information such as external storage, media photos, contacts, or precise location under the new policy. Additionally, applications for short-term loans that demand full repayment within 60 days of the loan issue date are not accepted.
Notably, Pakistan is one of the few nations where Google has added these new DLA criteria. The most recent regulatory revision is a big step towards safeguarding data privacy and defending consumers from risky financial activities.
