Fintech Group CLAP Partners with BSP and SEC to Combat Lending Fraud
The Consumer Lending Association of the Philippines (CLAP) is preparing to collaborate with the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) to curb rising financial fraud in the lending industry.
The initiative aims to operationalise the Anti-Financial Account Scamming Act (AFASA), which CLAP President Arianne Ferrer designated as the group’s “first action item for next year.”
While the industry employs sophisticated fraud detection, structural challenges persist.
Moritz Gastl, General Manager at fintech firm Tala, noted that identity verification remains a major concern due to the lack of a consistently available universal ID, such as the national ID.
Data from the Cybercrime Investigation and Coordinating Center (CICC) revealed that the Philippines ranked second globally for suspected digital fraud rates last year at 13.4%, well above the global average of 5.4%.
According to CLAP, these incidents have eroded customer trust by nearly 62 per cent.
The sector is also navigating macroeconomic pressures. Gastl pointed out that the recent GDP slump to 4% and fluctuating consumer prices directly affect borrowers’ ability to repay loans, as many live paycheck to paycheck.
However, the association noted a paradox in the local market: economic downturns caused by natural disasters, such as typhoons, often trigger an increase in loan applications as consumers seek immediate financial relief through flexible lending options.
Featured image: Edited by Fintech News Philippines based on an image by mohammadhridoy_11 via Freepik.
The post Fintech Group CLAP Partners with BSP and SEC to Combat Lending Fraud appeared first on Fintech News Philippines.
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