THE Securities and Exchange Commission (SEC) is boosting its oversight of the credit sector, advancing reforms to build a more transparent, accountable, and resilient lending environment.
Speaking at the 44th National Credit Congress of the Credit Management Association of the Philippines (CMAP), SEC Commissioner Javey Paul Francisco outlined the agency’s regulatory direction amid the rapid expansion of digital lending platforms.
Digital transformation has widened access to credit, but has also exposed new risks, as consumers complain about unregistered online lending firms, unfair collection practices, high interest rates, and weak disclosure standards, Francisco said.
“These trends point to a deeper issue in the credit market, where the core challenge extends beyond how access to credit is priced, disclosed, and collected,” Francisco said, stressing that transparency and accountability are essential to maintaining public trust.
The SEC is shifting from reactive enforcement toward a preventive, system-level regulatory framework through proposed Online Lending Platform (OLP) guidelines, Francisco said.
The framework seeks to establish structured market entry, strengthen platform oversight, embed conduct standards, and enforce clearer rules on data governance and consumer protection.
The reforms are intended to curb abusive practices while creating a level playing field for responsible lenders to operate and scale with predictability and accountability, Francisco said, adding that accountability must lie on lenders, even in arrangements involving third-party service providers.
He also emphasized that core regulatory principles such as fair pricing, transparent disclosure, and proper treatment of borrowers remain unchanged despite technological advances in the sector.
“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,” Francisco said.
He likewise raised concerns over the growing use of artificial intelligence and data-driven systems in lending, noting that innovation must be balanced with safeguards to ensure fairness, transparency, and borrower protection.
The congress, held in line with Credit Consciousness Week (April 24-30), brought together financial executives, credit practitioners, and industry stakeholders to discuss developments in the country’s credit ecosystem, including risks and regulatory responses in the digital era.