The Financial Regulatory Authority’s (FRA) fintech committee has approved the integration of financial technology into the operations of three brokerage firms, marking a significant milestone for Egypt’s non-banking financial sector. Telda Securities, Beltone Securities, and Thndr Securities have been granted approval to digitize their brokerage activities fully.
Under the FRA’s decision, Telda and Beltone will implement fintech solutions for electronic verification, digital customer onboarding, electronic contract execution, and digital record-keeping. These processes will be facilitated through Vlens, a registered outsourcing provider. Meanwhile, Thndr will follow a similar model, utilizing outsourcing company Valify Solutions for verification and onboarding, while handling electronic contract execution and digital record-keeping through its internal systems.
In a statement on Tuesday, the FRA emphasized that this move aligns with its broader strategy to modernize and digitize non-banking financial services. This effort follows the enactment of Law No. 5 of 2022, which governs and promotes the use of fintech in the sector. The FRA further stressed that any company leveraging fintech must comply with strict risk management and governance measures to maintain operational efficiency and safeguard consumer protection.
Expansion of Fintech across Non-Banking Financial Sector
In addition to brokerage firms, the FRA’s fintech committee has approved five non-banking financial service providers to adopt fintech solutions across their operations. These companies, which have contracted with Vlens for fintech outsourcing services, include Halan Consumer Finance, B.Tech Finance, and You Consumer Finance, as well as two firms in the securities sector: MNT Tech Holding and Bokra for the formation and management of securities portfolios and investment funds.
The FRA noted that this decision is part of its continuous efforts to accelerate the digitization of financial transactions, broadening access to non-banking financial services in line with the Egyptian government’s financial inclusion agenda. By enabling brokerage firms to adopt fintech solutions, the FRA aims to simplify stock market participation, allowing investors to open accounts and trade fully online without needing to visit physical branches or submit paper documents.
This transition is expected to significantly reduce transaction costs and processing times for customers, enhance accessibility for younger and financially underserved populations, and improve the speed and accuracy of financial transactions. In turn, this should bolster confidence in Egypt’s non-banking financial sector and support overall market efficiency.
Approval of New Digital Finance Startup
As part of its ongoing fintech expansion efforts, the FRA has also approved the establishment of “ManZel Fin,” a new startup specializing in consumer and mortgage finance, with an initial capital of EGP 30m. This approval falls under Authority Resolution No. 268, which permits the establishment of digital non-banking financial startups with a minimum capital requirement of EGP 15m. The company’s formation aligns with Law No. 5 of 2022 and Authority Board of Directors Resolution No. 268 of 2023, further reinforcing the FRA’s commitment to fostering digital financial solutions.
Additionally, the FRA granted new approvals for outsourcing company LuminSoft to expand its fintech services. LuminSoft is now authorized to facilitate electronic contracting for non-banking financial products and the registration, preservation, and retrieval of digital financial records. This makes LuminSoft the second outsourcing company licensed to operate across all four key fintech fields regulated by the FRA.
Bokra Portfolio Formation and Management also received approval to implement fintech solutions in its operations. The company will leverage electronic identification, verification, and authentication, along with digital customer onboarding, contract execution, and record-keeping. These services will be provided through its partnership with Vlens.
Strengthening Fintech-Led Financial Evolution
The FRA’s recent decisions reflect its ongoing efforts to drive financial digitization and expand the adoption of fintech across Egypt’s non-banking financial sector. By integrating secure, efficient, and accessible digital financial solutions, these initiatives aim to support a more inclusive financial ecosystem, strengthen investor confidence, and enhance the overall efficiency of financial markets.
As the regulatory landscape continues to evolve, the FRA remains committed to fostering innovation in financial services while ensuring adherence to governance and security standards. The expansion of fintech adoption across brokerage firms, consumer finance companies, and investment firms highlights the growing role of technology in reshaping Egypt’s financial sector and unlocking new opportunities for market participants.
