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Egypt’s financial technology sector is witnessing rapid growth as financial institutions increasingly adopt digital solutions and artificial intelligence to develop products, accelerate service delivery, improve risk management and expand access to customers.

Islam Azzam, Chairman of Egypt’s Financial Regulatory Authority (FRA), said the Egyptian market currently includes around 75 entities using financial technology to provide non-banking financial services, reflecting the continued expansion of digital transformation across activities regulated by the authority.

FinTech Expands Across Non-Banking Financial Activities

The use of financial technology covers a wide range of non-banking activities, including consumer finance, microfinance, financing for small and medium-sized enterprises, insurance, investment, portfolio management and securities trading.

The FRA continues to approve companies seeking to use technology in delivering financial services. During 2026, the authority granted new approvals covering financing, trading and investment management activities through digital platforms and solutions.

Digital transformation is increasingly replacing traditional procedures with electronic processes covering customer identification, contract execution, transactions, portfolio management and the delivery of financial products through applications and online platforms.

This transformation can reduce the time required to provide financial services, improve customer experience and enable institutions to reach a broader range of clients beyond traditional branches.

FRA Expands Digital Approvals

In May 2026, the FRA granted six companies approvals to conduct non-banking financial activities using financial technology, including SME financing as well as securities custody and trading through digital solutions.

The authority continued issuing approvals in September to companies operating in microfinance, consumer and real estate financing, and investment funds through FinTech platforms.

Artificial Intelligence Gains Ground in Financial Services

The digital transformation of financial services extends beyond applications and electronic platforms, with artificial intelligence emerging as a major driver of development across the global financial industry.

Financial institutions are increasingly using AI for data analysis, creditworthiness assessment, fraud detection, process automation, personalized financial products, customer service and risk management.

Azzam said global investment in artificial intelligence within the FinTech sector reached approximately $16 billion in 2025.

According to projections cited by the FRA, global AI investment in financial technology could rise to around $80 billion over the next decade, representing five times the investment level recorded in 2025 if these forecasts materialize.

AI Creates Opportunities for More Personalized Products

Artificial intelligence is also opening the door for financial companies to develop products that are more closely tailored to individual customer needs.

Rather than providing identical products to all users, AI-powered systems can analyze data to determine appropriate services, financing limits and risk levels more accurately within applicable regulatory frameworks.

FRA Develops Regulatory Framework for FinTech

Alongside technological expansion, the FRA is working to develop regulations governing the use of technology across Egypt’s non-banking financial sector.

This framework is supported by Law No. 5 of 2022 regulating and developing the use of financial technology in non-banking financial activities, along with executive regulations covering digital identity, electronic contracts and records, and electronic Know Your Customer procedures.

FRA-Sandbox Supports Innovative Startups

The authority also operates the FRA-Sandbox regulatory environment, allowing startups and other companies to test innovative financial ideas and business models before moving toward full commercial deployment.

During its first year, the regulatory sandbox received more than 50 innovative projects. Nine secured preliminary approval to join the program, while two progressed to the operational testing stage.

The FRA aims to use the sandbox to support entrepreneurs and startups developing solutions for financing, investment, insurance and financial markets.

The framework allows companies to test innovative technologies within a supervised environment, helping regulators balance technological innovation with customer protection.

Responsible AI Use Remains a Priority

Despite the opportunities created by artificial intelligence, the FRA has stressed the importance of deploying these technologies responsibly.

Key areas requiring oversight include data governance, risk management, regulatory compliance, customer protection and privacy, particularly as advanced AI models increasingly depend on large volumes of financial and personal data.

The growing number of entities using FinTech to deliver non-banking financial services indicates that technology is becoming an increasingly important part of Egypt’s financial infrastructure, while the expected growth in global AI investment could drive a new phase of competition focused on faster, more efficient and data-driven financial services.