EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Mohamed Abed and Hamza Shehata, Shehata & Partners Law Firm
Enhancing public awareness about digital finan - cial services is crucial for the sector’s growth. In addition, comprehensive regulatory frameworks will provide clarity and confidence for business - es. The full implementation of the EDPL will be a significant step towards robust data protection oversight and enforcement. 2. Fintech Business Models and Regulation in General 2.1 Predominant Business Models The trends outlined back in 2023 by FinTech Hub, a unified platform established by the Cen - tral Bank of Egypt (CBE) to foster and connect all fintech ecosystem stakeholders, remain con - sistent. Such fintech business models (verticals) are as follows. • Payments and remittance: this vertical is a major player in Egypt’s fintech landscape. It includes start-ups and companies offering digital payment solutions, remittance services and mobile wallets. Notably, the CBE’s new app, InstaPay, plays a crucial role in facilitat - ing transactions, reducing cash dependency, and providing secure and convenient pay - ment options. • Lending and alternative finance: this vertical encompasses businesses providing alterna - tive lending solutions, microloans and innova - tive credit scoring methods. These fintechs target individuals and SMEs that may not have access to traditional banking services, thereby promoting financial inclusion. • B2B marketplaces: this vertical focuses on facilitating trade and transactions between businesses. These platforms often include features such as supply chain finance, invoic - ing and payment processing to streamline business operations and enhance efficiency.
• Digital banking solutions are gaining traction, offering a range of services, including online banking, personal finance management and digital-only banks. These solutions cater to the increasing demand for digital financial services and aim to provide a seamless and user-friendly banking experience. Further - more, the CBE fosters the development of this field thanks to its recent regulations on the licensing and registration of digital banks, aiming to regulate the licensing and registra - tion requirements and procedures for digital banks. • Regtech solutions help financial institutions comply with regulatory requirements efficient - ly. These include electronic identity verifica - tion (eIDV), anti-money laundering (AML) tools and compliance management systems. Regtech is crucial for maintaining the integrity and security of the financial ecosystem. • Insurtech companies offer innovative insur - ance solutions, utilising technology to improve the insurance value chain, from cus - tomer acquisition to claims processing. These start-ups are enhancing customer experienc - es and making insurance more accessible. • Wealthtech encompasses robo-advisers, investment platforms and financial planning tools. These solutions are democratising investment opportunities and making wealth management services more accessible to the general population. • While still emerging, blockchain and crypto - currency solutions are developing in Egypt. These include platforms for trading, investing and utilising blockchain for secure transac - tions and record-keeping. • AI and data analytics: fintech companies lev - eraging AI and data analytics are enhancing decision-making processes, risk assessment and personalised financial services. These
204 CHAMBERS.COM
Powered by FlippingBook