FRA launches innovation sandbox for non-banking sector

The Financial Regulatory Authority (FRA) introduced a new regulatory sandbox on Thursday to encourage innovation in the non-banking financial services sector.

Issued under Resolution No. 163 of 2024, the sandbox enables non-banking financial service providers and entities seeking entry into the FRA’s outsourcing registry to test innovative financial technology applications, including new business models and mechanisms.

FRA Chairman Mohamed Farid explained that the initiative is designed to support startups using digital technologies to deliver non-banking financial services. The sandbox will foster innovation, expand financial service access, and enhance the capabilities of digitally operating non-banking financial firms.

Farid highlighted that the sandbox will also help innovators navigate regulatory compliance while promoting sustainable and inclusive growth within the sector. The secure environment will allow startups to test their products and services under FRA supervision, ensuring both compliance and innovation.

Additionally, Farid urged startups and entrepreneurs in the non-banking financial sector to leverage the sandbox to refine their business models and enhance project efficiency, supporting the sector’s continued development.

Attribution: FRA

Subediting: M. S. Salama