According to the Philippine Securities and Exchange Commission, Google will tighten approval for personal loan apps available in the Philippines to prevent illegal and abusive lending practices.
The SEC announced Tuesday in a statement that technology companies will have to provide more documents and proof that developers are licensed to operate an online lender or to do crowdfunding activities starting on May 11. According to the company, those who do not comply will be removed from the Google Play Store, its digital distribution service widely used by Android phone owners.
Southeast Asia has increased efforts to curb online loan sharks since the pandemic boosted financial technology. In November of last year, the SEC stopped granting permits for lending apps and closed 72 platforms. Furthermore, its central bank capped interest rates and fees charged by apps.
In addition to India and Indonesia, the Philippines will be the third country where Google implements stricter requirements for personal loan apps, the SEC announced.