Fynamics Lending Inc., the company behind PondoPeso, said it supports the Securities and Exchange Commission’s campaign in shutting down online lenders that were operating without the necessary licenses.
Fynamics spokesperson Atty. Jose Marlon Pabiton said the recent cease-and-desist orders against unscrupulous online lending apps were a welcome development among legitimate industry players. “We fully support the SEC’s mandate and its efforts to clean up the online lending industry,” Pabiton said.
“The local online lending industry is still in its infancy, but it has rapidly expanded due to the countless individuals it has helped. The SEC, as the congressionally mandated regulator of this industry, is well positioned to support its stable growth, so we appreciate its efforts to help standardize the entire sector,” he said.
PondoPeso, the online lending app owned and operated by Fynamics, is one of the most established and chosen platforms among online borrowers. A majority of its users are minimum wage earners who are neglected by banks and other mainstream credit granting institutions.
SEC commissioner Atty. Kelvin Lee was at the forefront of the recent crackdown on online lending companies, who, apart from operating without the necessary permits and licenses, were reportedly harassing and shaming delinquent borrowers.
More than 20 online lenders have been shut dow, and 47 applications faced cease-and-desist orders against them.
Part of the SEC’s efforts in the crackdown involved working with Google to remove illegal lending apps from its Play Store. “The SEC recently met with Google representatives to discuss the matter of illegal lending apps in the Google Play Store. Google has committed to working closely with the Commission in dealing with this issue on illegal lending apps,” Lee said in a tweet on his personal twitter account.
Fynamics said it was eager to cooperate with the SEC and other government bodies to help regulate online lending and promote educated and responsible borrowing in the Philippines.
“As a member of this burgeoning industry, we want nothing else but the best for all its stakeholders,” Pabiton said.
“Compliance with laws and the government should be a basic, if not a primordial, aspect of any legitimate online lender,” he said.