الهيئة العامة للرقابة المالية

• Sustainable growth, responsible finance, sound underwriting, healthy credit portfolios and consumer protection drive industry success.
• Behavioral Scoring promotes inclusion rather than credit exclusion, guaranteeing client transparency.
• FRA regulatory updates manage risk preemptively without slowing growth, backed by ongoing FRA support.

Dr. Rehab Taha, Assistant to Chairman for the Non-Banking Financial Sector announced that FRA— chaired by Dr. Islam Azzam—has introduced a comprehensive suite of regulatory and technological measures to ensure the stability and sustainable growth of Egypt’s non-banking financial sector. Speaking at Cairo ICT 2026 during a panel discussion titled “The Future of Non-Banking Finance: FRA’s New Mandates,” Dr.  Rehab Taha highlighted the Authority’s transition from traditional supervision to real-time oversight. This shift is designed to promote responsible finance, safeguard consumer rights and enhance financial inclusion in alignment with Egypt Vision 2030.

The panel took place at the Egyptian Credit Bureau (“iScore”) pavilion, featuring leading figures from the financial and technology sectors.

Dr. Rehab Taha highlighted the exponential expansion of the consumer finance sector, noting that total funding surged from EGP 8 billion serving 262,000 beneficiaries to approximately EGP 96 billion serving nearly 12 million beneficiaries in just five years.

She added that to keep pace with this rapid growth and mitigate associated challenges—such as uneven credit quality, rising debt burdens, default risks, identity theft, and financial fraud—FRA recently issued several pivotal decisions to tighten creditworthiness standards and prevent over-indebtedness.

Among the key measures is a mandate for real-time data integration between consumer finance companies and iScore. This connectivity enables instant tracking across all stages of lending cycle, including initial approval, disbursement, partial or full repayment and final settlement or legal procedures. By providing immediate visibility into a client’s active commitments, the regulation prevents borrowers from taking on multiple loans beyond their repayment capacity.

To reinforce digital security and identity verification, FRA also mandated that institutions operating in consumer finance, as well as SME and microfinance, implement One-Time Password (OTP) verification. Sent directly to a client’s registered mobile number during approval, disbursement and usage, this verification requirement reduces the risk of impersonation and fraud while building greater consumer confidence in digital financial transactions.

Additionally, FRA directed financing entities to incorporate behavioral assessments derived from alternative data into their credit decisions. This approach allows lenders to evaluate payment patterns and build a more comprehensive profile of creditworthiness, particularly for individuals who lack a traditional credit history. Dr. Rehab Taha stressed that behavioral scoring serves as an inclusive tool rather than a means for credit exclusion, opening doors for broader segments of the population to access formal financing.

While behavioral scoring provides critical support, Dr. Rehab Taha clarified that it does not relieve institutions of their primary responsibility to conduct thorough credit due diligence. She added that rejected applicants retain full rights to know the reasons behind a denial, request data updates and appeal inaccurate information, ensuring transparency and fairness throughout the process.

Dr. Rehab Taha emphasized that the Authority’s recent decisions and measures are not intended to curb the sector’s growth rate. Instead, their primary goal is to ensure credit quality and strike a balance between market prosperity and consumer protection. She affirmed that solely the volume of financing granted no longer measures the metric for success, but by sustainable growth, responsible financing, sound lending practices, healthy credit portfolios and the protection of consumer rights.

Furthermore, she highlighted that FRA’s market-oriented strategy directly drives growth, emphasizing that all decisions stem from continuous consultation with industry stakeholders.

Concluding her remarks, Dr. Rehab Taha stated that FRA is committed to providing full technical support to all licensed entities under its supervision, establishing open communication channels to answer any inquiries, and granting adequate compliance grace periods. This approach ensures a smooth transition to the new regulatory requirements while preserving sustainable growth and financial stability.