Published 25 Jul,2021 via Daily News Egypt - Mohamed Omran, Chairperson of Egypt’s Financial Regulatory Authority (FRA), has announced that the authority’s Board of Directors has prioritised digital transformation and financial technology (fintech) in its 2025 vision.
The move, which came at its last meeting, is part of the FRA’s “Future Authority 2025” vision. It has also defined a road map for its future and the activities it monitors for the coming period, to serve as the basis on which the next Board of Directors can build on.
The road map aims to prepare the second phase of the comprehensive strategy for non-banking financial activities for the next four years, covering 2022 to 2026.
Omran said that the FRA’s Vision 2025 works to create a non-banking financial system that is inclusive and stimulates economic growth.
It is also characterised by independence and gender equality, whilst contributing to transforming financial inclusion from visions and ideas into an actual reality that prioritises women’s empowerment, youth, and low-income citizens.
This future vision also contributes to emphasising and activating the authority’s institutional framework by presenting the second tier of leaders who will participate in the implementation of the current strategy, and to carry out its responsibilities.
Omran said that the FRA’s Future Authority 2025 vision has re-evaluated the priorities of the main objectives and themes. As a result, it has arranged them in light of the economic, technological, and environmental changes at the local and international levels.
This vision defines the authority’s work priorities in the next phase, by focusing on five main axes, which include digital transformation and financial technology (fintech).
The emergence of a new generation of fintech startups supporting financial institutions and digital solution providers has contributed to a revolution in the digitisation of the financial sector.
This has allowed for the benefits of technological innovations to be felt in the areas of financial transactions.
The second axis covers financial inclusion and financial sustainability, which seeks to enhance financial stability by providing financial services to all segments of society. This happens through the channels of the official economy and improving the standard of living of individuals.
There is also the axis of risk management and early warning against crises, where the non-banking financial activity remains surrounded by many risks. These require the supervisory authorities to put in place precautionary measures and sound practices to manage and control risks in accordance with international best practices. The aim is to reduce exposure to potential losses.
This is in addition to the axis of legislative structure development. Without advanced and firm legislation, the authority will not be able to carry out its supervisory duties.
Finally, there is the axis of enhancing the levels of financial culture and capacity building, due to the importance of qualified human capital in the development and development of the non-banking financial sector.
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