The Financial Regulatory Authority Approves the Establishment of Two New Companies to Enhance FinTech in Non-Banking Activities

The Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has announced the approval of establishing two new startups in financial technology to support small and medium-sized enterprises (SMEs) and provide electronic verification and authentication services. The two companies are “Flind” for SME financing and “V.Lens,” which operates in electronic identification, verification, and authentication.

The Role of the Financial Regulatory Authority in Supporting FinTech

Dr. Mohamed Farid explained that these approvals come as part of the FRA’s efforts to accelerate the digitization of non-banking financial transactions, in line with Law No. 5 of 2022, which regulates and develops the use of financial technology in non-banking financial activities. He emphasized that FinTech is a crucial element in achieving financial inclusion, allowing society’s largest number of individuals to easily and quickly access non-banking financial services.

Details of the Approvals and Relevant Legislation

The committee responsible for approving the use of financial technology, chaired by Mohamed El-Sayed, Deputy Chairman of the FRA, approved the establishment of “Flind” as the first outsourcing company specializing in SME financing using FinTech. The committee also approved the registration of “V.Lens” in the FRA’s register of outsourcing service providers, by the Financial Technology Regulation and Development Law and the FRA’s relevant regulatory decisions.

Functions and Electronic Services of V.Lens

After its registration, V.Lens will operate in several key areas, including:

• Electronic identification, verification, and authentication.
• Electronic Know Your Customer (eKYC) processes.
• Electronic contracting for non-banking financial products.
• Electronic registration, storage, and retrieval of digital records.

Companies’ Commitment to Technological Risk Management Standards

Dr. Farid pointed out that the FRA has required all companies wishing to use FinTech in non-banking financial services to adopt technological risk management and governance methodologies. The aim is to ensure companies’ continuous efficient performance and protect their clients’ rights, contributing to financial stability.

Supporting Financial Inclusion through FinTech

The FRA Chairman emphasized that FinTech enhances the capabilities of the non-banking financial sector and supports Egypt’s vision of achieving financial inclusion and digital transformation. He added that FinTech is a key driver in facilitating access to non-banking financial services for all segments of society.

These steps are part of the FRA’s vision to provide a conducive environment that helps companies grow and individuals access non-banking financial services easily and quickly, thereby enhancing financial inclusion and sustainable economic development in Egypt.

Read Also: Visa Welcomes 22 Fintech Startups from Across Africa to Join its Second Accelerator Program Cohort