The Philippines Securities and Exchange Commission (SEC) is shifting its regulatory approach to address emerging structural risks in the digital lending and credit market.

The regulator is advancing a preventive regulatory model through proposed guidelines for online lending platforms.

The new framework aims to establish structured market entry, strengthen platform-level oversight, and enforce rules on data governance.

Speaking at the 44th National Credit Congress in Pasay City, SEC Commissioner Javey Paul D. Francisco noted a sharp rise in consumer complaints related to the Philippines lending sector.

These complaints primarily involve unregistered platforms, unfair debt collection practices, high interest rates, and gaps in disclosure.

Francisco explained that the proposed guidelines address these harmful practices and create a level playing field for responsible lenders.

The new framework embeds conduct standards directly into lending operations and enforces clear consumer protection rules.

Furthermore, the commissioner stressed that lenders cannot outsource their accountability to third-party service providers.

While acknowledging that digital transformation and data-driven systems expand financial inclusion, Francisco cautioned that the industry must match its innovation with robust safeguards.

“Digital lending has the potential to expand access and drive growth, but without strong governance, it can undermine the very trust that sustains the credit system,” said Francisco.

The National Credit Congress convened industry stakeholders to discuss strategies for strengthening the domestic credit ecosystem.

Featured image by the Philippines Securities and Exchange Commission (SEC).