The Financial Regulatory Authority (FRA) is adopting an expansionary strategy to develop non-bank financial activities, by setting the necessary controls and legislation to keep pace with digital transformation processes, in line with global markets.
Among various new projects, the FRA is developing a credit rating system that will allow the unbanked to access credit. Ratings will be assessed based on consumer behaviour and non-financial data, reported Daily News Egypt which interviewed FRA assistant chairperson Hesham Ramadan about the authority’s future projects, especially in FinTech and digital transformation.
Mr Ramadan said that the credit rating system is being worked on in cooperation with a data solutions provider to help sort out non-banking financial activities, by providing classifications for unbanked categories.
He said the FRA has received several requests for establishing financial technology platforms: Two companies want to establish digital insurance platforms, two companies want to launch digital insurance brokerage platforms, and one company seeks to get a licence for two consumer financing platforms and a robo-adviser for capital market activity.
The FRA has agreed to set rules and regulations for establishing companies wishing to engage in non-banking financial activities through the use of financial technology.
The platforms to be established would be required to commit to the same amount of capital according to the activity they seek to engage in, taking into account technological requirements. M