CAIRO - 28 May 2024: The Financial Regulatory Authority (FRA) has approved the establishment of Flend Company, a start-up using financial technology, to provide financing for small and medium-sized enterprises.
The decision was made by the FRA's committee responsible for approving the use of financial technology in non-banking financial activities. The committee is headed by Mohamed Al-Sayyad, the FRA's Vice President.
Additionally, the committee approved the creation of V.Lens, a company specializing in electronic identification, verification, and authentication services.
V.Lens will focus on electronic customer identification, contract finalization, as well as the registration, preservation, and retrieval of electronic records.
FRA Chairman, Mohamed Farid, highlighted the rapid progress in digitizing non-banking financial transactions, driven by recent legislative and regulatory decisions based on Law No. 5 of 2022.
Farid further stated that the FRA has mandated all companies applying to use financial technology in non-banking financial services to adopt mechanisms and methodologies for managing and governing technological risks.
The use of financial technology and the digitization of non-banking financial transactions are expected to enhance the capabilities of the non-banking financial sector, improving coverage in areas such as insurance, investment, and financing.
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