The Central Bank of Egypt (CBE), in collaboration with the Financial Regulatory Authority (FRA), has finalized the technical settings for the draft law that regulates alternative financing activities and fintech services related to banking.
According to the economic magazine recently released by the CBE, the law aims to provide legislative coverage for regulating alternative financing activities and fintech services linked to banking. It seeks to establish regulatory and supervisory boundaries for both the CBE and the FRA, defining the scope of their jurisdiction.
The law also aims to establish general rules for the activities and services outlined in the law to ensure the protection of the interests of all participants. It sets general requirements for licensing the activities and services mentioned in the law, facilitates the procedures for applying for licenses, and establishes a specific timeframe for decision-making.
Furthermore, the law aims to tighten control over fintech activities to ensure compliance with the state’s financial and monetary policies, enhancing financial and monetary stability.
According to the CBE, the new law is expected to contribute to bridging the financing gap for segments of society not engaged with traditional banks, whether individuals or small and micro-enterprises. Additionally, it will contribute to localizing modern fintech technologies and promoting their use within the Egyptian market as a pillar of digital transformation.
In a related context, the CBE revealed its collaboration with the National Telecommunications Regulatory Authority (NTRA), a subsidiary of the Ministry of Communications, and the Egyptian Credit Information Company “I-Score” in setting the technical configurations for the digital lending project based on behavioural assessment for customers.
The project will enable banks to provide instant credit services to customers of electronic mobile wallet portfolios based on behavioural assessment mechanisms.
Earlier, the CBE disclosed that the number of accounts for mobile wallet portfolios reached 34.4 million in June 2023.
