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7 Updates in the Egyptian fintech industry

The fintech sector in Egypt is experiencing rapid growth and transformation, with several significant developments shaping the future of finance.
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The fintech sector in Egypt is experiencing rapid growth and transformation, with several significant developments shaping the future of financial technology in the country. Here is a wrap up of some of the biggest updates since the beginning of 2024:

1. FRA approves new fintech companies for sme financing and digital services

The Financial Regulatory Authority (FRA) has recently approved the establishment of Flend Company, a fintech startup aimed at providing financing for small and medium-sized enterprises (SMEs). Additionally, V.Lens has been approved to offer electronic identification, verification, and authentication services. These companies will enhance the digitization of non-banking financial transactions, driven by recent legislative decisions under Law No. 5 of 2022.

2. New regulations for establishing and licensing fintech companies

The FRA has introduced new regulations that set out the requirements for the establishment and licensing of fintech companies in Egypt. These regulations apply to firms offering non-banking financial services (NBFS) such as mortgage financing, SME financing, microfinance, financial leasing, factoring, and consumer finance. Companies must meet specific criteria, including a minimum capital requirement and ownership by technology or fintech experts, to obtain a license.

3. MNZL raises $3.5 million in seed funding

Egyptian fintech startup MNZL has secured $3.5 million in seed funding to scale its operations. Founded in 2023, MNZL allows users to transform their assets, like homes and cars, into liquidity for their projects. The startup’s innovative approach to asset-backed lending is revolutionizing credit access in Egypt, providing financial leverage to families and contributing to broader economic prosperity.

4. EFG Hermes acquires minority stake in Danish fintech Kenzi Wealth

EFG Hermes, a leading investment bank in the MENA region, has acquired a minority stake in Kenzi Wealth, a Danish digital wealth manager. This partnership will enhance EFG Hermes' digitalization efforts, combining their client network with Kenzi Wealth’s AI tools to offer a more efficient and personalized investment experience.

5. Alexbank partners with Mastercard to enhance payment solutions

Alexbank has partnered with Mastercard to advance its payment solutions strategy. This collaboration will leverage Mastercard’s technology to develop better fraud detection tools and cybersecurity capabilities. The partnership aims to modernize the payment experience for Alexbank’s cardholders, aligning with Egypt’s financial inclusion strategy.

6. Thndr expands into the UAE

Thndr, a mobile-first investment platform from Egypt, has announced its expansion into the UAE market. The platform allows users to invest in stocks, bonds, and funds through a mobile-based digital brokerage. Thndr’s success in Egypt, where it facilitated $1.8 billion in trades in 2023, sets a strong foundation for its growth in the UAE, aiming to democratize investment access across the region.

7. JumiaPay expands partnership with contact CrediTech

JumiaPay, Egypt’s leading e-commerce platform, has expanded its partnership with Contact CrediTech to enhance the online shopping experience. This collaboration will offer fee-free, interest-free, and down payment-free financing options to Jumia customers, aligning with Egypt’s vision for digital transformation and financial inclusion.

The fintech industry in Egypt is rapidly evolving, with significant advancements in regulatory frameworks, innovative startups, and strategic partnerships. These developments are not only enhancing financial services but also contributing to the broader economic growth and digital transformation of the country. As the sector continues to grow, it will play a crucial role in shaping the future of finance in Egypt.