The Egyptian Financial Regulatory Authority (FRA) has issued new decrees for the use of financial technology (fintech) in the non-banking financial sector, the authority announced in an official statement.
The new regulations allow companies licensed to practice non-banking financial services to use fintech or outsource fintech services. The decrees also address the issuance of digital identities, records, contracts, and accounts for online non-banking financial transactions.
The new regulations aligned with the country’s policy for boosting fintech sector and supporting the ecosystem of online non-banking finance.
Fintech investments in Egypt hit US$259 million in 2022, a 12.6 per cent increase versus the previous year. Egypt’s financial inclusion rates have improved between 2016 and 2022 by 147 per cent, according to the Central Bank of Egypt.
They also specify requirements for technology infrastructure, information systems, technology risk prevention, and after-risk recovery and resiliency.
The FRA also set a group of requirements for the authentication of digital identity including usernames, passwords, identity documents, emails, mobile phone numbers, e-payment accounts, digital signatures, and biometrics.
“The use of fintech supports the capabilities of the non-banking financial sector to achieve insurance, investment, and financing inclusions. It also helps actualize Egypt’s vision for financial inclusion and digital transformation,” the FRA said.
In May, the Egyptian Cabinet approved amendments to the Electronic Signature Law (Law No. 15 of 2004).The amendments make it easier for businesses to use electronic signatures, which would further streamline the business process.
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