FRA launches first register for tech-based risk assessment firms in non-banking finance

The Financial Regulatory Authority (FRA) has issued a decision establishing a dedicated register for companies that provide technology-driven risk assessment systems for non-banking financial activities, marking a significant step in regulating the use of advanced technologies within Egypt's non-banking finance sector.
These companies rely on sophisticated technological tools, including artificial intelligence and digital data analytics, to assess credit and operational risks more efficiently and accurately. Such systems enable faster, data-driven decision-making and enhance risk evaluation processes across non-banking financial services.
Mohamed Farid, Chairperson of the FRA, said that introducing an organised regulatory framework governing technology-based risk assessment firms is a core pillar of the Authority's strategy to develop an advanced legislative and supervisory environment that keeps pace with the rapid growth of Egypt's non-banking fintech ecosystem.
Farid noted that over recent years the FRA has worked to democratise investment by expanding access to financial products across different segments of society. This has been achieved through the development of the investment funds sector and the introduction of diversified instruments, including crowdfunding platforms and gold investment funds, which have attracted a wide base of small-scale investors.
He added that the new framework aims to further democratise finance by leveraging technology in risk assessment for non-banking financial activities, enabling broader access to financing in a more secure, sustainable, efficient, and well-regulated manner.
Under FRA Board Decision No. 279 of 2025, a formal register will be established for companies providing technological systems for risk assessment in non-banking finance. The register will include key information such as the company's name, legal form, head office address, details of the managing director or person responsible for management, and official contact information.
The decision prohibits non-banking financial companies and entities from dealing with unregistered risk assessment providers. It also requires non-banking finance companies to notify the FRA of their intention to contract with any registered provider prior to concluding an agreement and to submit a copy of the contract to the Authority.
At the same time, the decision allows non-banking financial companies and entities to use their own internal technological systems for risk assessment when granting financing, provided that such systems receive prior approval from the FRA.
The Authority has set out detailed eligibility criteria for registration. Applicants must include the provision of technological systems or technical solutions among their stated corporate objectives and must have issued and paid-up capital of no less than EGP 10m or its equivalent. Companies are also required to have at least three years of experience in the activity. Alternatively, eligibility may be satisfied if shareholders' equity is no less than EGP 20m, or if at least 50% of the company is owned by a technology firm with a minimum of three years' experience in the field. Applicants must submit audited financial statements prepared by an auditor registered with the FRA under the first section of the auditors' register.
Registration applications must be accompanied by a digital business model, a detailed explanation of the methodologies and algorithms used, technical documentation of the technological infrastructure, a record of previous work, and proof of payment of an application review fee of EGP 25,000. The FRA is required to issue a decision on the application within 30 days from the date all requirements are fulfilled.
The registration will be valid for three years, with companies required to apply for renewal at least three months before the expiry date. The decision also grants existing technology-based risk assessment companies a six-month period from the effective date of the decision to regularise their status.
Registered companies will be subject to a set of ongoing obligations, including compliance with FRA decisions, enabling regulatory inspections, maintaining strict confidentiality of data, avoiding conflicts of interest, and submitting quarterly reports to the Authority on the outcomes of their activities.
In cases of non-compliance, the FRA may impose a range of regulatory measures, including written warnings, temporary suspension for up to one year, delisting with a ban on re-registration for periods ranging from six months to five years, or permanent removal from the register.
The FRA said the decision supports the digital transformation of the non-banking financial sector by regulating the use of technology in credit data analysis. It is expected to enhance risk management practices, expand access to non-banking finance for wider segments of society, and contribute to the sustainable growth and stability of non-banking financial activities.