CAIRO - 8 January 2024: The Financial Regulatory Authority (FRA) introduced Resolution No. 268 of 2023 which mandates that financial technology (FinTech) startups wanting to engage in non-banking financing activities must possess a minimum capital of LE 15 million.
The primary objective of this resolution is to ensure the financial stability of these companies and their ability to deliver efficient services.
According to the FRA's resolution, companies are given a two-year period, starting with a capital of LE 15 million, to fulfill the remaining licensing requirements. Subsequently, they are required to increase their capital as necessary for each specific non-banking financing activity.
Additionally, the company must initiate its non-banking financing operations within a maximum of two months from the date of receiving the license.
This initiative is part of the FRA's strategy to improve the business environment for non-banking financial firms that utilize financial technology, particularly those that are emerging.
The FRA aims to simplify procedures and lower costs for startups, thereby fostering their growth and contributing to the overall development of the financial sector and the national economy.
The non-banking financial sector is recognized for its complementary role to the traditional banking sector. It facilitates the mobilization of savings, provides funding sources for economic ventures and individuals, promotes investment flow, safeguards rights and property, and strengthens investor confidence. Consequently, it contributes significantly to economic development.
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