The Financial Regulatory Authority (FRA) issued three decisions to outline the digital transformation of the non-banking financial sector in Egypt.
The decisions includes the requirements of equipment, technological infrastructure, information systems and means of protection and insurance, and the requirements for establishing digital identity, digital contracts and digital records, and allowing the establishment of a registry to register outsourcing service providers.
The Authority called on existing or new companies to apply for digital non-banking financial services licence. Mohamed Farid, the FRA Chairperson, said that the issuance of the package of executive decisions came to activate Law No. 5 of 2022 to regulate the use of financial technology and harness the potential of financial technology that enhances the capabilities of the non-banking financial sector, and achieve insurance, investment and financing inclusion, and supports Egypt’s vision to achieve financial inclusion and digital transformation.
Ahmed Abou El Saad, Managing Director of Azimut Egypt, said that the company is ready to submit a complete file to the Authority for its approval regarding the start of activating the full technological use of its electronic application, which represents a new technological leap in the industry of investment funds as the first electronic platform for investment funds to keep pace with the vision and efforts of The Financial Regulatory Authority in this regard.
Abou El Saad added that the application allows customers to carry out account opening procedures, deposit and withdraw funds, invest in various investment funds issued by Azimut, and view the financial position of customers’ investments, whether for investment funds or securities portfolios, while maintaining the confidentiality of customers’ accounts and transactions.
He continued that the company appreciates the interaction that the Authority is doing in order to pave the way for developing the activity of companies operating in the field and the level of services provided to its current and future customers, especially as the Authority’s decisions are in line with Azimut Egypt’s strategy, which seeks to provide tools and means for investment for all investors and work to achieve financial inclusion in The best ways, and provide a platform for diversified investment funds, covering all types of assets with easy access by all means for all investors under the supervision of the Financial Regulatory Authority.
Ehab Rashad, Vice Chairperson of Mubasher Capital, said that the decisions were necessary at the present time, especially with artificial intelligence entering asset management activities, and everyone started providing all services through it, explaining that Egypt lagged somewhat in this aspect.
Rashad pointed out that Mubasher obtained approval to launch Web Advisors specialized in asset management, and awaiting final activation in front of the public.
He explained that execution mechanisms are an important part that is inseparable from the speed of application, and that technology uses will contribute to Egypt’s progress towards its vision towards financial inclusion, stressing the need to secure information and provide the necessary technological protection.
Mohamed El-Feky, co-founder of Sympl platform, specialized in “buy now pay later” services, said that the FRA’s decisions are evidence of development and progress, and responsiveness from regulatory bodies and interaction with the market.
He explained that these decisions will accelerate the pace of spread of electronic platforms in Egypt, such as digital identity that will help spread solutions that have been presented years ago as models “know your customer| that allow customers to obtain approvals and loans without resorting to going to companies and which will be approved after those decisions.
He explained that technology programs will help raise public financial culture and provide more flexibility and ease of dealing, but it is necessary that those applications address traders’ mentality and address a real problem, especially with public readiness and evidence is widespread Other applications on a wide scale such as Facebook and WhatsApp.
El-Feky confirmed that one of the most important challenges is to put executive regulations with detailed details for each decision from 3 decisions, as there must be detailed guiding rules for quick implementation.
