الهيئة العامة للرقابة المالية

Dr. Islam Azzam:

• Embracing advanced financial technology aligns with the national vision to position Egypt as a leading regional FinTech hub.
• Advanced digital verification for non-Egyptians is key to streamline market entry and accelerate foreign investment into Egypt.

As part of the Financial Regulatory Authority’s (FRA) strategy to promote FinTech and develop digital services within non-banking financial activities, the Authority has granted LumenSoft preliminary approval to join the Regulatory Sandbox (FRA Sandbox). This makes LumenSoft the third company to receive such approval since the Sandbox’s inception.

LumenSoft, a specialist in digital identity, e-verification, and digital contracts, submitted a project designed to verify the identities of non-Egyptians using electronic passports (e-Passports). By leveraging Near Field Communication (NFC) technology, the project enables a seamless, end-to-end digital identity verification process via mobile devices.

Dr. Azzam affirmed that these digital mechanisms are essential for easing the entry of foreign investors into the Egyptian market and enabling their access to non-banking financial services. He noted that streamlining Know Your Customer (KYC) procedures through secure digital verification will significantly enhance the flow of foreign capital into the domestic market.

LumenSoft project relies on reading and validating e-passport data in accordance with the International Civil Aviation Organization (ICAO) Public Key Directory (PKD) standards. This ensures the highest levels of process security and data integrity.

FRA Chairman added that embracing advanced tech solutions underscores Egypt’s vision to become a regional FinTech leader. He emphasized that supporting digital innovation and upgrading the financial sector’s technological infrastructure enhances the Egyptian market’s competitiveness and attracts more global FinTech firms.

Dr. Azzam explained that FRA Sandbox is a sophisticated regulatory tool designed to foster financial innovation. It provides a regulated environment for companies to test innovative business models and technological solutions before a full market launch. This strengthens the market’s capacity to absorb modern digital solutions and accelerates the digital transformation of financial services.

Following its entry into the Sandbox, LumenSoft will live-test its digital ID solutions and e-passport integration. By syncing with Azimut Egypt, the model facilitates secure, regulated investment processes under the FRA’s oversight.

Ahmed Khalifa, Executive Director of Regulatory Sandbox, stated that the project serves as a practical model for leveraging digital transformation to enhance financial services. He added that it empowers non-Egyptians to access investment opportunities across various asset classes in Egypt, thereby driving the efficiency and competitiveness of the non-banking financial sector.