The Financial Regulatory Authority’s (FRA) Board of Directors in Egypt has reportedly approved a draft law that aims to regulate and support the use of Fintech services in the non-banking financial sector.
Mohamed Omran, Chairman at the FRA, noted that the approval will aim to support Egypt’s adoption of a policy that will help establish a remote work environment based mainly on ensuring the safe exchange of information and supervision.
Omran explained that the draft law should help with enhancing the use of innovative technologies, while providing a set of regulatory guidelines for Fintech businesses. The proposed legal framework will aim to ensure transparency and offer the guidelines needed to support non-banking financial markets.
These new Fintech focused regulatory guidelines have been introduced at a time when substantial investments have been made in developing the IT sector in the MENA region. As first reported by MenaFn, the region has received about $160 billion in tech investments this year, which is about a 2.5% increase when compared to last year.
Omran added that the draft law defines Fintech as a mechanism that uses the latest technologies to streamline operations in the non-banking financial sector. Fintech may be used to support and facilitate financial and financing activities, Omran explained.
He further noted that Fintech services may be provided via applications, digital platforms, and artificial intelligence (AI) based solutions. The use of Fintech services allows businesses or companies to improve their existing operations.
The FRA in Egypt is the designated administrative body that’s tasked with supervising companies that plan to offer non-banking financial services by using digital Fintech platforms. These companies may also include crowdfunding service providers.
As reported recently, Egyptian digital payments provider, Fawry, has experienced record growth following the COVID-19 outbreak.
The National Bank of Egypt (NBE), the country’s largest banking institution in terms of total assets, recently introduced new services to support digital banking.