CAIRO - 21 November 2024: The Financial Regulatory Authority (FRA) has announced the establishment of a regulatory sandbox through Decision No. 163 of 2024.
This sandbox is designed to enable non-banking financial service providers and entities registered in the FRA's outsourcing registry to test innovative financial technology applications, including advanced business models and mechanisms.
The sandbox seeks to support startups offering smart digital solutions, making it easier for them to enter the financial market while enhancing the regulatory framework for fintech. It aims to foster sustainable financial growth, encourage innovation, and create a conducive environment for delivering advanced financial, investment, and insurance solutions.
Mohamed Farid, Chairman of the FRA, emphasized that the sandbox will play a pivotal role in driving innovation within the non-banking financial sector.
He highlighted its potential to expand access to financial services, boost the capabilities of non-banking financial companies, and support tech-based startups in developing cutting-edge solutions.
Farid added that the FRA is committed to staying ahead of technological advancements, creating an interactive ecosystem connecting companies with innovative solutions to financial institutions, research centers, universities, business accelerators, global tech firms, and investors.
The sandbox will also help startups meet regulatory compliance standards, build investor confidence, and attract funding, contributing to a dynamic and sustainable growth environment for the non-banking financial sector.
Farid invited entrepreneurs and startups to take advantage of the sandbox to enhance their business models and improve operational efficiency.
This initiative aligns with the FRA's broader vision of accelerating the digital transformation of non-banking financial transactions and widening access to financial services.
In recent years, the FRA has introduced key regulatory measures to support digital transformation, including Law No. 5 of 2022, which governs the use of fintech in non-banking financial activities.
The authority has also issued decisions on licensing requirements for fintech providers, digital identity standards, and customer verification processes to create a robust regulatory framework for innovation.
These efforts underscore the FRA's dedication to fostering a forward-looking, tech-enabled financial ecosystem that supports innovation and inclusivity.
Be Social
Comments
Leave a Comment