Egypt’s FRA Approves Establishment of First Tech Start-Up to Fund SMEs

– Egypt’s Financial Regulatory Authority (FRA) has approved Flend, the first tech start-up to fund SMEs using advanced financial technology, accelerating the digitization of non-banking financial transactions.

– The FRA also registered V.Lens as an outsourcing service provider specializing in electronic identification, investigation, authentication, and customer identification, enhancing the non-banking financial sector’s efficiency.

– FRA Chairperson Mohamed Farid emphasized that adopting financial technology and robust risk management methodologies is crucial for advancing insurance, investment, and financing inclusion, aligning with Egypt’s vision for financial inclusion and digital transformation.

Egypt’s Financial Regulatory Authority (FRA) has approved the establishment of Flend, the first tech start-up to fund SMEs using advanced financial technology, according to media reports.

The approval was granted by the committee evaluating financial technology applications in non-banking financial activities, chaired by Mohamed Al-Sayyad, FRA Vice President.

FRA Chairperson Mohamed Farid emphasized that these approvals expedite the digitization of non-banking financial transactions.

The FRA’s legislative and regulatory decisions, based on Law No. 5 of 2022, aim to enhance financial technology within the non-banking sector.

Additionally, the committee has registered V.Lens as an outsourcing service provider.

This aligns with the Law Regulating and Developing the Use of Financial Technology in Non-Banking Financial Activities and the FRA’s Board of Directors’ Decisions No. 139, 140, and 141 of 2023.

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

Farid also highlighted that companies using financial technology in non-banking financial services must adopt robust mechanisms and risk management methodologies to ensure efficient operations and safeguard stakeholders’ rights.

The adoption of financial technology and the digitization of non-banking financial transactions are crucial for advancing insurance, investment, and financing inclusion, aligning with Egypt’s vision for financial inclusion and digital transformation.