The Financial Regulatory Authority (FRA) has granted preliminary approval to Lumin Soft to join its FinTech Regulatory Sandbox, making it the third company to receive such approval since the sandbox’s launch. The move comes as part of the Authority’s efforts to promote the adoption of financial technology and expand digital services in non-banking financial activities.
Lumin Soft specialises in digital identity solutions, electronic verification and digital contracting technologies. The company submitted a project designed to verify the identity of non-Egyptians using electronic passports (e-passports) through Near Field Communication (NFC) technology, enabling the creation of an integrated digital pathway for identity verification via mobile devices.
Islam Azzam, Chairperson of the FRA, said such digital mechanisms represent an important step towards facilitating the entry of foreign investors into the Egyptian market and enabling them to access non-banking financial services.
He noted that simplifying procedures for identifying investors and verifying their identities through secure digital channels would help strengthen foreign investment flows into Egypt.
The company’s project relies on reading and verifying e-passport data in accordance with the International Civil Aviation Organization Public Key Directory (PKD) standards, ensuring both data security and reliability throughout the verification process.
Azzam added that adopting advanced technological solutions in financial services aligns with the state’s broader strategy to position Egypt as a regional hub for financial technology. He stressed that supporting digital innovation and strengthening the technological infrastructure of the financial sector will enhance the competitiveness of the Egyptian market and attract more fintech companies.
He explained that the regulatory sandbox launched by the Authority serves as a key regulatory tool for supporting innovation in the financial sector. It provides a supervised testing environment that allows companies to trial innovative business models and technological solutions before introducing them to the market, thereby accelerating the pace of digital transformation in financial services.
Through its participation in the sandbox, Lumin Soft will be able to conduct live testing of its business model within the regulatory framework. This includes the creation of digital identities using e-passports and integration with the Azimut Investments Egypt platform, enabling investors to access financial products within a regulated supervisory environment.
For his part, Ahmed Khalifa, Executive Director of the Authority’s regulatory sandbox, said the project represents a practical model for leveraging digital transformation to develop financial services. He added that it will help enable non-Egyptians to access investment services across various asset classes in the Egyptian market while enhancing the efficiency and competitiveness of the non-banking financial sector.
