The Financial Regulatory Authority’s (FRA) Board of Directors has approved a draft law regulating and developing the use of financial technology (fintech) in non-banking financial activities.
FRA Chairperson Mohamed Omran said that the approval will support the Egyptian state’s adoption of a policy providing a remote work environment based primarily on the safe exchange of information and supervision.
Omran added that the draft law aims to enhance the use of modern and innovative technology, and to facilitate the supervisory role of a censor over the subject entities.
It will also ensure adherence to the standards of transparency and governance, protection of dealers in non-banking financial markets, and the adoption of modern technologies to facilitate dealing with the non-banking financial sector.
This comes in light of the current generous spending on information technology in the Middle East and North Africa (MENA) region, estimated at about $160bn, reflecting a 2.5% increase on 2019.
Omran said that the draft law defines financial technology as a mechanism that uses modern technology in the non-banking financial sector to support and facilitate financial and financing activities and services.
This will occur through applications, programmes, digital platforms, artificial intelligence (AI) or electronic records to consider transactions. The use of fintech facilities allows companies and projects to enter the market by providing innovative products and services.
The FRA is the designated administrative body supervising the foundation of companies wishing to engage in non-banking financial activities using digital fintech solutions, including crowd-funding companies.