Monday, July 22, 2024
Editor's PickIslamic fintech start-up becomes Pakistan's first licensed P2P financing platform

Islamic fintech start-up becomes Pakistan’s first licensed P2P financing platform

Finja Invest, a Shariah compliant P2P financing platform, has received approval from the regulator to officially run its business, making it the first P2P lending service provider in the country.

Finja Lending Services received the license for Finja Invest after rigorous testing in the Securities and Exchange Commission of Pakistan (SECP)’s Regulatory Sandbox.

“The regulator’s comprehensive evaluation process assessed the service provider’s adherence to regulatory guidelines, risk management protocols, data protection measures and overall operational efficiency,” a statement from the SECP read.

Finja Invest connects investors to creditworthy local ‘karyana’ stores (small, family-owned general stores) in Pakistan in need of stock financing. The platform offers up to 30% annual returns to investors and short-term Shariah compliant financing to borrowers.

The company, originally founded in 2016 as a mobile wallet, is currently licensed and regulated by the SECP to operate as a P2P financing platform and by the State Bank of Pakistan as a non-bank financial institution.
The SECP had, in 2022, introduced an enabling regulatory framework for P2P lending.

“The SECP acknowledges the significance of P2P lending as an alternative financing option that has the potential to empower individuals and small businesses. P2P lending platforms bring numerous benefits to the financial ecosystem and contribute toward the growth and accessibility of financial services. They also bridge the gap between borrowers and lenders,” the regulator said.

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