Egypt's FRA approves establishment of first tech start-up to fund SMEs

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Egypt - The committee responsible for evaluating applications related to financial technology in non-banking financial activities, led by Mohamed Al-Sayyad, Vice President of the Financial Regulatory Authority (FRA), has approved the establishment of Flend.

This start-up aims to provide financing solutions for small and medium-sized enterprises (SMEs) using cutting-edge financial technology.

Additionally, the committee has officially registered V.Lens as an outsourcing service provider. This registration aligns with the Law Regulating and Developing the Use of Financial Technology in Non-Banking Financial Activities, as outlined in Law No. 5 of 2022, along with the Authority’s Board of Directors’ Decisions No. 139, 140, and 141 of 2023.

V.Lens specialises in electronic identification, investigation, authentication, and customer identification. Furthermore, the company facilitates electronic contract conclusions for non-banking financial products.

Mohamed Farid, Chairperson of the FRA, emphasized that these recent approvals accelerate the digitization of non-banking financial transactions. The FRA’s legislative and regulatory decisions, based on Law No. 5 of 2022, aim to enhance the use of financial technology within the non-banking financial sector.

Farid also highlighted that all companies seeking to utilize financial technology in non-banking financial services must adopt robust mechanisms and risk management methodologies. This ensures efficient operations while safeguarding stakeholders’ rights.

The adoption of financial technology and the digitization of non-banking financial transactions play a crucial role in advancing insurance, investment, and financing inclusion. These efforts align with Egypt’s vision for financial inclusion and digital transformation, benefiting various societal groups.