FRA Fintech Forum 2025 Spotlights Egypt’s Drive to Digitize NBFS and Foster Fintech Innovation

At the FRA Fintech Forum 2025, Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority (FRA), showcased Egypt’s expanding efforts to digitalize non-banking financial services (NBFS) and support fintech innovation.

Dr. Farid underscored the crucial role of digital transformation in driving economic development, pointing to global trends, 64% of consumers use digital tools daily, and nearly 80% of adults access digital financial services. As over 60 countries have introduced regulatory platforms for digital finance, Egypt is aiming to remain competitive by advancing its own frameworks.

Progress Toward Digitization

The FRA's digital push focuses on enhancing customer experience in the NBFS sector. Regulatory steps began with Decision No. 122/2014 on online insurance policy distribution, followed by Decision No. 316/2014 on tech infrastructure, and Decision No. 1005/2013 on brokerage cybersecurity standards.

Momentum increased with Law No. 5 of 2022, which established a legal foundation for fintech in NBFS. Key decisions since then include:

• Decision 69: Integrating insurance company databases with FRA systems
• Decision 58: Governing licensing and company formation
• Decision 139/2023: Defining IT, security, and fintech standards
• Decision 140/2023: Introducing digital IDs, e-contracts, and e-KYC rules
• Decision 141/2023: Regulating outsourcing and enabling electronic onboarding
• Decision 57: Legalizing robo-advisory services
• Decision 268: Allowing startups with EGP 15 million in capital to deliver NBFS via fintech

Recognizing the disruptive potential of AI, Dr. Farid stressed the need for both regulators and markets to build institutional readiness. FRA is also undergoing its own digital transformation, launching initiatives such as a central registry for e-signatures and contracts and a digital professionals platform.

Key Outcomes So Far:

• 70 NBFS firms have initiated digital transitions
• 24 now offer digital services
• 46 are finalizing compliance processes
• 7 provide outsourcing services
• 120,000 digital verifications completed, with 60% in capital markets
• 80,000 electronic contracts issued

Regulatory Sandbox & Hackathons

Through Decision No. 163/2024, FRA has introduced a regulatory sandbox that enables licensed NBFS providers and fintech service firms to test digital products in a secure, controlled setting.

The first hackathon will be held this August, offering up to USD 300,000 in prizes in collaboration with Mercatura Forum. An InsurTech Hackathon, in partnership with AUC Venture Lab, is set for September 1.

What’s Ahead?

FRA’s upcoming initiatives include:

• New regulations for digital investment platforms, starting with REITs and expanding to stocks and bonds
• Simplified participation rules for VC firms and funds
• Streamlined procedures for unsettled investment documents
• Legal reforms to broaden fund structures and investment vehicles