الهيئة العامة للرقابة المالية

• Ibrahim Sarhan, Chairman and CEO of e-finance moderated the Fireside Chat.
• Farid visited e-finance booth where he received a briefing on the technological advancements in the group’s infrastructure.

Dr. Farid:

• The Authority has ended the era of paper payments and launched a partnership with ‘e-Tax’ to facilitate digital invoice inquiries.
• Strategic cooperation with ‘e-finance’ to launch the first e-payment platform for Non-Banking Financial Institutions.
• Technology is a ‘magic element’ to link 14 regulatory activities.
• What has been accomplished at FRA over the past three years was a dream before 2023.
• The Regulator’s mindset has shifted: stability, inclusion and protection are now achieved through technological empowerment, replacing the old method of prohibition.
• Anyone who thinks they have mastered technology is mistaken (living under an illusion).
• Moving away from the easy, comfortable “No” to actively tackling new developments.
• A new era for the financial regulator: from ‘goalkeeper’ to ‘playmaker’.
• Fractional Ownership Revolution: purchase shares in properties and precious metals with just a few clicks.
• Public service is an ‘ethical responsibility,’ and ‘continuous learning’ is an obligation for the decision-maker.
• To enter public service is to accept the necessary sacrifice of significant personal, familial and social time.
• Superficial decisions have no place in financial market governance.

At Cairo ICT 2025, in an exceptional fireside chat that bridged the mind of the regulator and the arms of technology, FRA Chairman Dr. Mohamed Farid outlined the future of Egypt’s Non-Banking Financial Sector (NBFS). He declared a new era built on mandatory digitization and smart data. This fireside chat was moderated by Mr. Ibrahim Sarhan, Chairman and CEO of e-finance.

Dr. Farid revealed an ambitious digital roadmap that fundamentally moves beyond simple automation. This strategy includes major alliances with e-finance and e-Tax to establish unified payment platforms and fraud detection systems. This technological infrastructure aims to transform raw data into tangible economic value. He stressed the necessity of this shift, asserting that technology is no longer a luxury option but the lifeline and decisive factor in market stability and growth.

The discussion extended into a “revolution of concepts” governing supervision. Dr. Farid confirmed the Authority has departed from the traditional regulator’s role – prohibition to maintain stability – towards becoming an enabling regulator. This new approach adapts legislation, leveraging tools like electronic contracts and e-KYC to foster a flexible market. This pivotal change opens the door to innovative products like “Fractional Ownership” and “Gold Funds,” positioning technology as the sole guarantor of the difficult equation: speed in service coupled with maximum stakeholder protection.

On the sidelines of Cairo ICT 2025, Dr. Mohamed Farid, FRA Chairman visited e-finance booth. During his visit, he received a detailed briefing from company leaders regarding the technological leap in the group’s infrastructure. Dr. Farid also reviewed a package of new digital products and innovative solutions developed by e-finance to serve the financial sector and bolster digital transformation across the Egyptian market.

Regarding FRA’s future digital strategy, Dr. Farid revealed an upcoming cooperation with e-finance to launch a complete, dedicated payment platform for all services the Authority provides to supervised companies. He explained that every company will possess an electronic profile on this new platform, enabling them to e- pay all service fees to the Authority.

FRA Chairman also disclosed an anticipated partnership with e-Tax (an e-finance subsidiary) focused on enabling factoring companies to instantly inquire about and verify invoices. This crucial measure will regulate the market and prevent fraud. Dr. Farid concluded by emphasizing the Authority’s diligent efforts to combat fraud, particularly in the health and insurance sectors, noting that service delays caused by such practices directly harm citizens.

Regarding the rapid advancement of technology, Dr. Farid stressed that the rate of evolution is exceptionally fast, rendering yesterday’s technology obsolete today. He asserted: “Anyone who believes they have mastered technology is mistaken (living under an illusion).” He further clarified that while raw data in itself is worthless, it transforms with technology and analysis into the knowledge and value required for appropriate market intervention.

Dr. Farid recounted FRA’s digital transformation journey, highlighting a significant strategic challenge: the sheer scope of the Authority, which supervises 14 distinct qualitative activities governed by approximately 14 different laws. To address this complexity, he stated, FRA sought a “Cross-Cutting Factor”- a common, effective element to drive development across all sectors.

He added that following enormous efforts, the Board of Directors concluded that technology and digitization were this essential “magical element.” He emphasized that technology is a constantly evolving factor, declaring: “Its use is no longer an option; it is a necessity” for achieving goals such as enhancing customer service, minimizing direct interaction with entities and developing market infrastructure.

Dr. Farid concluded that regulators traditionally prioritize market stability over digitization, underscoring that the scale of achievement at FRA over the previous three years “was a dream before 2023”.

He emphasized that a radical change was necessary, starting the development journey with fundamental pillars like electronic Know Your Customer (e-KYC). He confirmed that the Authority now employs a robust system allowing customer identification via their phone and national ID, thereby minimizing reliance on human elements and drastically reducing human error rates.

He noted that FRA’s efforts have successfully driven 17 companies to use this technology, alongside 6 outsourcing firms ready to provide these digital services to all supervised entities.

The Authority subsequently focused on completing the legal and regulatory framework through the Electronic Contract. Clear provisions now exist in Law No. 5 of 2022, guaranteeing a central, unalterable reference for these contracts. This ensures that the e-contract is fully recognized and granted legal standing before the Economic Courts, providing complete assurance to all stakeholders.

Dr. Farid acknowledged that applying technology presents a unique challenge for a regulatory body, noting that financial regulators have historically been the most prone to say “No” in the interest of stability. He stressed that changing this ingrained approach was difficult but essential. FRA Chairman added that He and the Board of Directors agreed on a balanced strategy: using digitization to enhance the efficiency of supervision, not to replace it. He concluded by highlighting that developing, refining and unifying the Authority’s internal databases was a critically vital step in this transformation.

Dr. Farid emphasized that effective supervision over hundreds of companies within the Non-Banking Financial Sector (NBFS) is impossible without a foundation of solid technological infrastructure and the use of Artificial Intelligence (AI) for analyzing big data.

He highlighted that this technological transformation has already yielded tangible results: the market has grown by multiples of the figures recorded before 2023, with FRA now targeting a four- to five-fold multiplication of the insurance sector’s size in the near future.

He confirmed that digitization has unlocked entirely new products . This includes permitting insurance companies to sell policies electronically – a process where full electronic linkage is nearing completion – and providing new licenses for FinTech and finance startups with progressive governing rules designed to facilitate their growth.

Dr. Farid added, “FRA launched the first digital platform for Fractional Ownership, allowing citizens to buy small parts of a property.” This regulatory framework immediately spurred growth, evidenced by the Authority receiving approximately 25 applications to establish Real Estate Investment Funds, compared to only two funds previously. He further noted that FRA organized Metals Funds to provide citizens with a secure, regulated and supervised investment channel.

Dr. Farid defined the Authority’s mission as promoting market growth and ensuring citizens receive smooth, secure service from supervised companies. He stated that technology guarantees this balance, positioning the regulator as the ultimate reference point.

FRA Chairman emphasized that out of 79 companies, 25 now offer services fully digitally, with an additional 54 meeting digital requirements. Furthermore, 6 outsourcing companies have been added to the new registry. The distribution of these digital services shows a strong concentration in the capital market (65%), followed by financing (29%), while digital insurance currently accounts for 6% of the sector.

Dr. Farid shared his management philosophy, asserting that public service is a “moral responsibility” requiring continuous effort and study. Citing that public officials effectively “donate a part of their family and social life,” he stressed that knowledge is an absolute necessity. Superficial decisions are unacceptable in the complex market; therefore, every decision must be the result of deep dives into the files to benefit the market and protect clients.

FRA Chairman concluded by affirming that the Authority is establishing a modern economy based on ambitious ideas before capital, on stimulating legislation before traditional oversight, on digitalization before paper and on innovation before procedures.