Egypt Approves 6 Fintech Companies to Expand Non-Banking Financial Services
Egypt's Financial Regulatory Authority has approved six companies to provide lending, investment, and custody services using financial technology, including Paymob and Souhoola.
Egypt's Financial Regulatory Authority (FRA) has approved six companies to provide technology-driven non-banking financial services, including lending, investment, and custody, according to Egyptian Streets.
The approvals included Welzi Financial Holding to operate in custody, Welzi Securities Trading for digital operations, Paymob for SME financing, and Midbank for digital SME financing.
The approvals also covered Souhoola through its V-Lens platform, while Fawry was registered as a technology provider to serve its subsidiaries.
The authority stated that non-banking finance represents about 54% of the Egyptian financial system, giving these approvals significant importance in expanding access to financial services.
What Do These Terms Mean?
Financial Regulatory Authority (FRA): The body that licenses and supervises non-banking financial service activities in Egypt.
Non-Banking Finance: Financial services provided by companies outside traditional banking activities, such as consumer finance and financial leasing.
Custody: The service of holding and managing clients' assets, such as securities, on their behalf for a fee.
Small and Medium Enterprises (SMEs): Businesses whose volume of operations falls below a certain threshold, often requiring flexible financing tailored to their capacity.
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