President Abdel Fattah El-Sisi approved the law regulating and developing the use of financial technology in non-bank financial activities (FINTECH), in the context of improving financial inclusion and working to expand the base of beneficiaries of these activities brei.
Experts have emphasized the role of this law in legalizing companies’ conditions and in contributing to increasing their customer base, given the factors that this law provides to attract new segments of customers for non-bank financial activities, as it contributes to reducing the costs borne by companies. and customers together, as well as increasing the efficiency of services and products provided to citizens.
The experts monitored 3 main benefits of this law that will positively impact the non-bank financial sector, namely to provide opportunities for companies to facilitate their operations and implementation through accreditation and approval of electronic signatures, in addition to reliance on electronic contracts, in addition to granting licenses to start-ups to provide services without the need for capital. Big.
Dr. Muhammad Omran, Chairman of the Board of Directors of the Egyptian Financial Supervisory Authority, stated that the practitioners of non-bank financial activities using digital financial technology will be divided into two categories under this Act; The first represents companies that want to participate in non-bank financial activities through financial technology technology. These companies will be established and licensed by the Authority in accordance with the provisions of the law.
He added that the second category of companies and entities currently licensed by the Authority to engage in these activities and in addition want to carry out the activity through the use of financial technology. Among those registered in a register prepared for this purpose, to undertake certain tasks on his behalf, provided that it is in accordance with an outsourcing agreement concluded between them in this regard.
He pointed out that this decision came within the framework of the development of the non-banking financial sector and increasing the efficiency of the services it provides to customers, in terms of easy access to the largest possible base of customers and reducing the costs required to benefit from these activities and services.
Mahmoud El-Sakka: The law improves access to customers in governors and remote villages … and contributes to reducing costs for companies
Mahmoud El-Sakka, chairman of the board of directors of the Arab African Leasing Company, said the decision to use financial technology techniques in non-bank financial activities improved companies’ access to the largest possible number of clients in remote governorships and towns. need to open branches in many governors.
Al-Sakka added that technology provides very diverse financial services in the field of payments and lending, which is easy and low in cost, which helps to revive the field of microfinance in particular, as it enables clients to develop technological programs and use systems that improve the ease of transfer of funds between the two parties, which points to the contribution of Mobile money transfer increases the number of microfinance companies.
He explained that the use of technology will reduce costs for companies and customers together, as companies no longer have to open branches and employ many employees, as it facilitates access to customers who want to benefit from non-bank financial activities, and work to reduce costs needed to take advantage of non-bank financial activities services for clients.
Al-Saqa pointed out that technology supports and promotes the non-banking financial sector, as it is under the framework of financial inclusion that seeks to achieve the widest possible base and the efficiency of services and products provided by the sector provided, to increase.
Walid Hassouna: The use of financial technology in non-bank financial activities is a milestone for the promotion of the sectors
Walid Hassouna, CEO of the non-bank finance sector at EFG Hermes, and CEO of Valeo, in turn said that the law on the use of financial technology in non-bank financial activities is a milestone for the promotion of all sectors .
He added that there are 3 main benefits of this law that will be positively reflected on the non-bank financial sector, noting that these benefits provide opportunities for companies to facilitate their operations and implementation by approving and approving electronic signatures, in addition to rely on electronic contracts, in addition to granting licenses to start-ups to provide Services without the need for large capital.
Hassan Ibrahim: Replacing traditional services with their digital counterparts has become an urgent matter for the continuation of economic activities following the “Corona” pandemic.
Hassan Ibrahim, Director-General of the Egyptian Federation of Small, Medium and Micro Enterprise Financing, said replacing traditional services with their digital counterparts has become an urgent matter for the continuation of economic activities, especially after the spread of the Corona pandemic, which necessitated it. achieve social distancing and take precautionary measures, praise the movements of the Financial Supervisory Authority for issuing a law regulating and developing the use of financial technology in non-banking financial activities, which will contribute to the improvement of the application of financial inclusion, by expanding the base of beneficiaries of these activities.
Ibrahim stressed the importance of enforcing the law on the microfinance industry, in particular that the industry is characterized by the daily handling of a large number of clients with a larger number of financial transactions to complete the disbursement and collection of financing, which the pressure within the branches and direct communication between a large segment of the citizens.
He pointed out that government trends had paved the way for the activation of the use of financial technology instruments among the simple, with the issuance of Act No. fits with advanced economies and to include all activities of the official system.Indeed, microfinance institutions have responded to the law and government controls and started the application.
He added that the market has witnessed the issuance of a number of electronic financing products represented in nanofinancing: the microfinance product, which is made available entirely electronically, and explains that despite the recent era of the product and the incomplete experience of its availability in full, there was a remarkable growth in the value of funds exceeding £ 1.3 million, with a number of 7,137 clients by the end of the second quarter of 2021, according to the latest report which issued by the Financial Supervisory Authority.
Eman Ismail: Non-bank financial technology improves the application of financial inclusion in the market
In the same context, Iman Ismail, Chairman of the Board of EGYLESS Leasing Company, said that in view of the technological developments prevailing in all areas; The use of technology in non-bank financial activities is an opportunity to create significant growth in the sector and enable it to keep pace with the modern era of continuous development, and to upgrade the sector’s infrastructure.
Ismail added that the non-bank financial technology law improves the application of financial inclusion and contributes to expanding the base of beneficiaries of non-bank financial activities, pointing to the increased opportunities for access to new financial products and services that are characterized is through ease, speed and cost reduction, compared to traditional means, making them accessible All individuals.
Ismail indicated that companies that benefit from financial leasing activities need more time to use technology in financial services and products compared to customers if they use financial products and services in a technological way, as companies are working on large studies due to the large amount of money treated.
Ahmed Al-Khatib: Expanding the customer base of companies and speeding up access to services are the most prominent benefits of the law
Ahmed Al-Khatib, CEO and Managing Director of Aman Microfinance Company, said that the tendency to use financial technology in financial operations in general and non-banking operations in particular has become a reality and mandatory, adding that it is companies will allow to build a customer base more easily, and the presence of these companies can be improved.In many regions and provinces.
Al-Khatib added that his company has started using technological means and solutions in its financial operations since the issuance of the Financial Technology Act, which has strengthened the company’s presence throughout the Republic, and also allows the customer to make payments and private transfers to pay, even if he is in a governor other than the governor from whom he obtained funds.
Al-Khatib indicated that the use of financial technology in non-bank financial activities has a positive impact on both companies and customers, as customers receive financial services that are easy, fast and low cost and enable many customers to go into governance and villages to live. to take advantage of financial services and products through the technological means used, such as mobile applications or an electronic payment machine, and in return it improves the company’s position and enables it to achieve many governance rates without the need is to open new branches, adding that this increases the expansion of the customer base and attracts new segments that do not deal with the non-bank financial sector, in Financial Inclusion Framework.