Egypt’s FRA Moves First Fintech Sandbox Projects Into Live Testing
The regulator has approved its first two fintech pilots, focusing on digital identity verification and motor insurance claims.
Egypt's Financial Regulatory Authority (FRA) has launched the first live trials under its fintech regulatory sandbox, approving two projects for three-month pilot programmes as the initiative enters its second year.
The two pilots address key challenges in digital identity verification and insurance claims processing. One project, developed by GIG Egypt, enables remote inspection and damage assessment for comprehensive motor insurance, replacing in-person vehicle inspections with digital assessments designed to speed up claims, reduce costs and improve transparency.
The second pilot, developed by Lumin Soft in partnership with Azimut, uses electronic passports (ePassports) and near-field communication (NFC) technology to verify digital identities in line with International Civil Aviation Organization (ICAO) standards. The solution allows foreign nationals to verify their identities through their mobile devices to access insurance products, investment platforms and other non-banking financial services in Egypt.
Islam Azzam, Chairman of the FRA, said the launch of live testing marks an important milestone for the sandbox, which was established a year ago to provide startups and financial institutions with a controlled environment to test new technologies while complying with regulatory requirements. He added that the authority aims to develop the initiative into a regional hub for financial innovation, bringing together startups, investors, research institutions and universities while supporting the digital transformation of Egypt's non-banking financial sector.
According to the FRA, the sandbox has received 49 applications since its launch, with seven projects securing preliminary approval, including the two now entering live testing. It has also provided regulatory guidance to 45 organisations and organised workshops covering cybersecurity and the digital transformation of financial services.
The initial pilots will run for three months, with the option to extend testing under the supervision of the FRA's sandbox committee, before decisions are made on broader market deployment.
