Egypt’s Financial Regulatory Authority (FRA) has launched a dedicated register for companies providing technology-driven risk assessment systems, a pivotal step in formalizing the use of advanced technology within the country’s non-banking financial sector. The new regulation aims to enhance oversight, improve risk management, and foster a more secure and efficient fintech ecosystem.
These specialized firms leverage sophisticated tools like artificial intelligence and digital data analytics to evaluate credit and operational risks, enabling faster and more accurate data-driven decisions for non-banking financial institutions.
A Strategic Move for Fintech Regulation
Mohamed Farid, Chairperson of the FRA, described the new regulatory framework as a core pillar of the Authority’s strategy. He emphasized the goal of creating an advanced legislative and supervisory environment that can keep pace with the rapid evolution of Egypt’s non-banking fintech landscape.
Farid noted that the FRA has been working to democratize investment by expanding access to financial products, such as through crowdfunding platforms and gold investment funds. He stated that this new framework extends that mission by leveraging technology in risk assessment, which will enable broader access to financing in a more secure, sustainable, and well-regulated manner.
Understanding the New Framework
Under the FRA Board Decision No. 279 of 2025, a formal register will be established for all technology-based risk assessment providers. A key provision of the decision prohibits non-banking financial companies and entities from engaging with any risk assessment provider that is not officially registered with the FRA.
Furthermore, these financial companies must notify the FRA before entering into an agreement with a registered provider and are required to submit a copy of the contract to the Authority. However, the decision also allows companies to use their own internally developed technological systems for risk assessment, provided these systems receive prior approval from the FRA.
Eligibility and Registration Requirements
The FRA has outlined strict eligibility criteria for companies seeking registration. Applicants must have the provision of technological systems listed among their corporate objectives and maintain an issued and paid-up capital of at least EGP 10 million.
A minimum of three years of experience in the field is also required. Alternatively, companies can qualify if their shareholders’ equity is at least EGP 20 million, or if a technology firm with over three years of experience owns at least 50% of the company. Applicants must also pay a review fee of EGP 25,000 and submit a digital business model, audited financial statements, and detailed documentation of their methodologies and technical infrastructure.
The registration is valid for three years, and existing companies have been granted a six-month grace period to regularize their status and comply with the new mandate.
Compliance and Enforcement
Once registered, companies will be subject to ongoing obligations, including adherence to all FRA decisions, facilitating regulatory inspections, maintaining strict data confidentiality, and submitting quarterly activity reports.
In cases of non-compliance, the FRA is authorized to impose a range of measures, from written warnings and temporary suspensions to delisting from the register for a period of up to five years or, in severe cases, permanent removal.
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. This includes capital markets, insurance, private pension funds, mortgage finance, financial leasing, factoring, and microfinance. The FRA’s mission is to ensure market stability and protect the rights of stakeholders while fostering a competitive and transparent non-banking financial sector.
Source: Zawya
