Egypt's FRA issues new regulations for using fintech in non-bank finance

The new regulations enable companies licensed to practice non-banking financial activities to use fintech or outsource fintech services.

They also address the issuance of digital identities, records, contracts, and accounts for online non-banking financial transactions.

Broad goals
 

The new regulations provide for the creation of a record for providers of fintech outsourcing services for non-banking financial activities.

They also stipulate requirements for technology infrastructure, information systems, technology risk prevention, and after-risk recovery and resiliency.

The FRA also stipulated a group of requirements for the authentication of digital identity including usernames, passwords, identity documents, emails, mobile phone numbers, e-payment accounts, digital signatures, and biometrics.

"The use of fintech supports the capabilities of the non-banking financial sector to achieve insurance, investment, and financing inclusions. It also helps actualize Egypt's vision for financial inclusion and digital transformation," the FRA said.

Fintech in Egypt
 

A recent report by FINTECH Global revealed that fintech investments in Egypt reached $259 million in 2022, a 12.6 percent increase over the previous year.

Egypt's financial inclusion rates have improved between 2016 and 2022 by 147 percent, according to figures released by the Central Bank of Egypt.

In May, the Egyptian Cabinet approved amendments to the Electronic Signature Law (Law No. 15 of 2004).

The amendments make it easier for businesses to use electronic signatures, which would further streamline the business process.