Over the past few years, there has been rapid development in information technology, communication, and innovative financial solutions, particularly financial technology (FinTech). FinTech, is a term used to describe an emerging industry that uses innovative technology to enhance and optimize financial activities, and is becoming one of the most promising industries.
Thus, the Central Bank of Egypt (CBE) is taking initiative to support this emerging industry by developing a FinTech strategy to keep up with its rapid development while ensuring consumer protection and financial stability.
The CBE announced the soft launch of its Regulatory Sandbox in June 2019 and invited a number of FinTech startups and companies to take part in its 1st pilot cohort. This pilot cohort will focus mainly on e-KYC solutions that serves the banking sector. The main purpose of the Regulatory Sandbox is to allow faster and easier access to new financial solutions and embed compliance within the FinTech ecosystem at an early stage. This will allow FinTech startups and innovators to focus their efforts on their core offerings, without worrying about the uncertainties of the industry regulations.
The FinTech Hub, created by the CBE, aims to be a platform that fosters and connects all FinTech stakeholders in the MENA ecosystem. FinTech Hub is located in the heart of downtown Cairo, at the heritage building of the CBE.
The CBE is partnering up with VCs and different investors to create a Fund-of-Funds investment vehicle, to have a sustainable and independent investment platform that supports the growth of the FinTech ecosystem. The CBE committed 1 billion Egyptian Pounds to the Fund-of-Funds, as part of its role as a catalyst for change.
The vision of the FinTech Hub is to connect FinTech startups, financial institutions, mentors, investors, regulators and service providers in one space, as a one-stop shop for ecosystem stakeholders.
As members of this ecosystem, we have the dual roles of being a financial institution and a startup incubator and we are very excited to be a part of the development of this emerging industry. We look forward to becoming a key player and a member of this support system for FinTech startups and emerging financial technologies.
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