The Financial Regulatory Authority (FRA), chaired by Islam Azzam, has granted four companies approval to conduct a number of non-banking financial activities using financial technology (fintech), through its Committee for Reviewing Applications to Use Financial Technology.
The approvals are part of the FRA’s ongoing efforts to expand the beneficiary base of non-banking financial services, support digital transformation and promote the use of fintech to develop products and services for customers.
The approvals included licensing Ashal for Digital Finance to conduct microfinance activities using financial technology, as well as granting Manzil, a consumer finance and mortgage finance company, final licences to conduct consumer finance and mortgage finance activities using fintech.
Furthermore, the FRA approved granting Menthum Holding for Financial Investments permission to conduct activities including receiving subscriptions for investment fund units, and receiving and executing purchases and redemptions of units in open-ended investment funds for which it is licensed, using financial technology.
In addition, the Authority approved the establishment of Azimut Investments – Egypt as a digital platform for private equity and venture capital funds.
According to the FRA, the approvals will help develop specialised digital channels for non-banking financial activities, including investment in private equity and venture capital funds, while creating scope for greater use of technology in managing and facilitating related services.
The Authority grants such approvals as part of its constitutional and legal mandate to regulate and supervise non-banking financial markets and instruments, including capital markets, futures exchanges, insurance activities, mortgage finance, financial leasing, factoring and securitisation.
The FRA is also responsible for approving the establishment and licensing of companies operating in these markets, whether they conduct their activities through traditional means or using financial technology.
The FRA reaffirmed its continued drive to expand the use of financial technology across non-banking financial activities, develop the sector’s digital infrastructure and provide more efficient and flexible financial services, in line with rapid technological developments and customers’ needs, while maintaining the regulatory and supervisory requirements necessary to protect their rights and ensure market stability.
Conducting non-banking financial activities through fintech also expands access to new groups of beneficiaries, enhances the efficiency of services and operations, and facilitates access to non-banking financial products, supporting financial and investment inclusion as well as digital transformation.
