الهيئة العامة للرقابة المالية

Dr. Mohamed Farid:

• Leveraging technology to democratize finance and investment, marking transformative progress across the non-banking financial sector.
• We seek to create a flexible legislative environment that matches the rapid development of fintech ecosystem.
• A minimum capital of 10 million EGP and 3 years of experience are requirements for registration.
• A 6-month grace period to settle existing statuses.
• The Authority permits non-banking finance companies to use their own tech systems, provided they obtain official approval.

In a strategic step to enhance digital transformation and expand financial inclusion, FRA Board of Directors chaired by Dr. Mohamed Farid, issued a resolution to establish the first registry for Tech-based Risk Assessment Firms in non-banking finance.

Tech-based Risk Assessment Firms are entities that rely on modern technological tools to evaluate risks for non-banking finance more intelligently and quickly. They rely on Artificial Intelligence (AI) and digital data analysis to estimate risk levels, helping to make immediate and accurate financing decisions.

Dr. Mohamed Farid, FRA Chairman emphasized that regulating tech-driven risk assessment firms is a pivotal pillar of the Authority’s strategy. This initiative aims to establish a sophisticated legislative framework that mirrors the rapid evolution of Egypt’s non-banking fintech ecosystem.

He added that FRA has worked to democratize investment by expanding access to financial products across different segments of society. This has been achieved through developing investment funds sector and providing various tools, including crowdfunding and gold investment funds which succeeded in attracting wide segments of citizens with small investment values.

He continued: “Through this regulatory framework, we aim to democratize finance by leveraging technological systems and techniques for risk assessment in non-banking finance. This will open doors to non-banking financial services for a broader segment of citizens in a safe, sustainable, fast, and secure manner.”

FRA Board of Directors Resolution No. 279 of 2025 stipulated the establishment of a registry for Tech-based Risk Assessment Firms. It includes company name, legal form, headquarters address, name of the managing director, and contact details.

The said Resolution mandates that non-banking financial institutions (NBFIs) engage exclusively with entities listed in the official registry. Furthermore, firms are obligated to notify FRA of their intent to contract with a registered provider and must submit a copy of the agreement for review prior to execution.

Non-banking finance companies may use their own risk-assessment technologies, provided they receive official FRA approval before implementation.

FRA has established specific eligibility criteria for registration, requiring that a company’s corporate purpose explicitly include the provision of technological solutions. Applicants must maintain a minimum issued and paid-up capital of 10 million EGP (or its equivalent) and demonstrate a three-year operational track record. Alternatively, firms may qualify by holding 20 million EGP in equity or by being 50% owned by a technology firm with at least three years of experience. Furthermore, all applicants are mandated to submit financial statements audited by an FRA-certified Category (A) firm.

Under the new resolution, applicants must submit a formal request supported by a comprehensive digital business model, methodologies and algorithms, and detailed technical documentation of their infrastructure. Additionally, a proven track record and proof of payment for the 25,000 EGP examination fee are required. FRA provides a decision within a 30-day period following the submission of all regulatory prerequisites.

On the other hand, registration is granted for three years and must be renewed three months before it expires. Companies are further obligated to achieve full regulatory reconciliation within six months from the resolution’s effective date.

Registered entities must maintain strict adherence to FRA resolutions and data confidentiality standards while providing full cooperation during regulatory inspections. These firms are further required to avoid conflicts of interest and ensure the timely submission of quarterly reports.

Non-compliance triggers a range of FRA sanctions, including warnings, temporary suspensions of up to one year, or delisting. Severe violations may result in a re-entry ban of six months and up to five years or permanent removal from the registry.

This resolution accelerates digital transformation of the non-banking financial sector by leveraging AI-powered credit scoring. By modernizing risk management, the framework bolsters financial inclusion and ensures the long-term growth and stability of Egypt’s non-banking financial ecosystem.