Egypt’s Financial Regulatory Authority (FRA) has granted licenses and approvals to seven companies, signaling a significant push to expand the nation’s fintech and non-banking financial services landscape. The approvals were issued by the FRA’s specialized committee responsible for reviewing the use of financial technology in non-banking financial activities.
This move underscores the FRA’s commitment to fostering innovation, promoting digital transformation, and enhancing financial inclusion across the Egyptian market by empowering both established players and emerging startups.
New Licenses for Consumer Finance and Investments
Among the newly licensed companies, consumer finance startup adva received approval to operate as a fintech-powered consumer finance provider. This license positions the startup to offer digital financing solutions directly to a wider base of customers.
Additionally, Granite Holding for Financial Investments was granted approval to leverage fintech for managing investment fund subscriptions. The company will now be able to digitally process the receipt of subscriptions as well as the purchase and redemption of units in open-ended investment funds, streamlining operations for investors.
Enhancing Digital Financial Services
The FRA’s committee also approved several established financial institutions to enhance their digital capabilities. EFG Hermes International for Securities Brokerage, Hermes for Brokerage in Securities, and their parent company EFG Holding received approval to integrate VLens, a registered outsourcing service provider, for a suite of digital services. These include electronic client identification, verification, and authentication (e-KYC), as well as the digital execution of contracts and the secure management of digital records.
Furthermore, the Commercial International Brokerage Company (CIBC) secured approval to utilize financial technology in its activities. Luminsoft, another registered outsourcing provider, was also permitted to add a new technology to its service offerings.
A Supportive Regulatory Framework
These approvals are governed by FRA Decision No. 3196 of 2023, which established the committee and defined its mandate. The committee is tasked with deciding on licensing applications for companies wishing to engage in non-banking financial activities using fintech.
Its responsibilities also include reviewing requests from existing licensed companies to adopt new technologies, managing the register of outsourcing service providers, and granting temporary licenses to fintech startups. This framework is a core part of Egypt’s strategy to develop and implement regulations that support the growth of the fintech sector.
About The Financial Regulatory Authority (FRA)
The Financial Regulatory Authority is the primary government body responsible for supervising and regulating non-banking financial markets and instruments in Egypt. Its mandate includes fostering a stable, efficient, and transparent financial sector while protecting the rights of stakeholders and promoting sustainable economic development and financial inclusion.
Source: Fintech Gate
