Sixteen companies have received fintech licenses from Egypt’s Financial Regulatory Authority (FRA) to support the digital transformation of the nonbanking financial sector, FRA Chairperson Mohamed Farid said on Monday (May 26).
Four companies are currently registered to offer outsourcing services, with more expected to follow.
Speaking at the Caisec25 information security and cybersecurity conference in Cairo, Farid said around 110 institutions now meet the FRA’s cybersecurity requirements.
He noted, however, that the FRA oversees more than 3,500 entities across various financial activities.
The four outsourcing firms operate under a dedicated FRA registry and provide electronic identification, verification, and authentication; digital customer onboarding; electronic contracting; and digital record storage and retrieval.
Farid said the FRA aims to build a secure environment that strengthens the nonbanking sector’s role in the economy.
“As the regulator of the nonbanking financial sector, which includes capital markets, insurance, and financing activities, the Authority places significant importance on cybersecurity,”
he said.
“This involves developing policies and systems to protect customer data and ensure market stability.”
He added that the FRA recognises cyberattacks and data breaches as major threats.
“The accelerating pace of digital transformation creates opportunities but also increases cyber risks,”
he said.
“This requires urgent development of policies and systems that support sound fintech governance.”
Farid also pointed to rapid developments in artificial intelligence, saying institutions must be prepared to manage associated risks and recover from disruptions.
“We need a resilient nonbanking sector that can use technology effectively while handling risks efficiently.”
He said building technical capabilities must be matched by improving workforce skills.
“The human element remains central. Specialists in cybersecurity must ensure continuous and comprehensive training for staff.”
This follows a recent push by the FRA to digitise financial services, driven by executive decisions under Law No. 5 of 2022, which provides a legal framework for using technology in nonbanking finance.
Featured image credit: FRA
