ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has unveiled a comprehensive framework for digital lenders to launch innovative products such as embedded lending via APIs, buy now pay later services, and employer integrated earned wage access etc.

The SECP, in collaboration with industry stakeholders, conducted an extensive review of existing framework to foster innovation and ensure consumer protection. The new Circular 12 of 2024 introduced certain amendments as well as consolidated the requirements of Circulars 15 of 2022, 10 of 2023, and 15 of 2023.

The revised framework introduces a host of new product verticals tailored to meet the evolving needs of borrowers and further strengthening the cybersecurity standards. Noteworthy among these innovations are the introduction of Embedded Lending through APIs, Buy Now Pay Later services, and Employer Integrated Earned Wage Access.

The revised guidelines aim to enhance the access to finance for Small and Medium Enterprises through Business-to-Business financing channels. Moreover, the integration of multiple Non-Banking Financial Companies (NBFCs) with whitelisted digital lending platforms via APIs will facilitate the expansion of lending opportunities to a broader range of borrowers.

SECP is enhancing its digital lending ecosystem to cater to consumers and businesses, promoting transparency, data protection, and innovative financial solutions.  This Circular 12 is available at