The Board of Directors of the Financial Supervision Authority issued Resolution No. 163 of 2024 to establish and operate a regulatory laboratory for technological applications that allows practitioners of non-banking financial activities to use financial technology and for entities wishing to register and registered in the outsourcing register in the areas of financial technology in non-banking financial activities with the Authority, to conduct tests on… Innovative financial technology applications, including business models and related mechanisms.
The regulatory laboratory aims to support and facilitate the entry of emerging companies with smart digital solutions into the market, enhance regulatory understanding of financial technology, improve regulatory practices in support of sustainable and comprehensive financial growth, and enhance levels of innovation in the non-banking financial sector by continuing efforts to create an enabling and supportive regulatory environment to provide Financing, investment and insurance solutions for individuals and companies.
Dr. Mohamed Farid, Chairman of the Financial Supervision Authority, said that the regulatory laboratory will work to enhance the efforts of the Financial Supervision Authority in supporting emerging companies that operate on a digital technology basis in providing non-banking financial services, which in turn raises the levels of innovation within the non-banking financial sector. It would lead to expanding the base of beneficiaries of non-banking financial services, and developing the capabilities and capabilities of non-banking financial companies and service providers on a digital basis.
He added that the Authority is working to keep pace with the unprecedented technological development in order to benefit customers, by ensuring the existence of an interactive environment between companies that provide smart solutions for the benefit of non-banking financial institutions, research centers and universities, in addition to business incubators and accelerators, investors and international technology companies.
The Head of Financial Supervision explained that the regulatory laboratory for the non-banking financial sector will also help the Authority achieve its vision of supporting and encouraging innovation in non-banking financial services, while working to ensure that consumers benefit from emerging technologies as well as maintaining regulatory standards, provided that the regulatory laboratory helps emerging companies to Gain investor confidence and attract capital in order to create an interactive environment towards sustainable growth.
Farid pointed out that the regulatory laboratory of the Financial Regulatory Authority will work to support innovators to understand and improve compliance and regulatory practices, as well as support sustainable and comprehensive financial growth for the non-banking financial sector, and to provide a safe experimental environment for emerging companies to test their products and services under the authority’s supervision.
The Head of Financial Supervision invited emerging companies and entrepreneurs in the field of non-banking financial services with smart and innovative solutions to benefit from the regulatory laboratory in developing their business models and increasing the efficiency of their projects.
This comes in line with the vision of the Financial Supervisory Authority to digitize non-banking financial transactions and complete the digital transformation process within the sector, accelerating and facilitating access to non-banking financial services and expanding the base of its beneficiaries.
The Financial Supervision Authority had completed the regulatory and legislative framework for digital transformation, as it issued in 2022 Law No. 5 of 2022 to regulate the use of financial technology in non-banking financial activities, which was followed by Resolution No. 58 of 2022 regarding the conditions and procedures required for the establishment, licensing and approval of companies and entities wishing to practice Non-banking financial activities through financial technology techniques, based on the Authority’s belief in the importance of digital transformation in achieving its goals.
