Egypt Financial Regulatory Authority signals imminent launch of a non-banking financial sector regulatory sandbox and highlights its fintech digitalisation framework

The Egypt Financial Regulatory Authority (FRA) published remarks by its Chair, Mohamed Farid, delivered during a dialogue session at a Microsoft conference on artificial intelligence, outlining how the FRA has built a regulatory and operational framework to digitise non-banking financial transactions and expand access to non-banking financial services. The update also points to a forthcoming official launch of a regulatory sandbox for the non-banking financial sector. Farid linked progress on financial inclusion to updating rules for non-banking financial activities and summarised a sequence of reforms covering the use of financial technology, licensing and approval processes for entities operating through fintech, technology infrastructure and cybersecurity requirements, and a framework for digital identity, digital contracts and digital records that specifies electronic customer identification requirements. He also referenced rules establishing an outsourcing register for fintech services and the first-time issuance of requirements for an AI-driven investment robo-advisor model, and noted that four outsourcing providers are currently registered to support electronic verification and identification, e-contracting, and digital record services for financial firms. The FRA indicated the official launch of its non-banking financial regulatory sandbox is planned soon and that it is open to receiving ideas and innovative solutions, alongside an emphasis on governance of digital transformation, including data and information protection and safeguarding customer rights.