Arab Finance: The Financial Regulatory Authority (FRA) has granted preliminary approval for two projects focused on credit assessment and trading simulation to join its Regulatory Sandbox (FRA-Sandbox), bringing the total number of projects receiving initial approval since its launch to 11, as per a statement.
The approvals were issued through the FRA’s committee responsible for reviewing applications to use financial technology. The sandbox provides a flexible, secure regulatory environment for testing innovative business models and applications in non-banking financial services before wider market deployment.
Cairo-based fintech company WeLend received approval for a project that uses artificial intelligence (AI) and alternative data to assess the creditworthiness of small and medium-sized enterprises (SMEs), in collaboration with Cairo-based financial services provider Tamweely.
The proposed solution analyzes financial and operational data to improve the efficiency and effectiveness of SME credit assessments. It combines AI with human oversight to maintain reliable results while reducing the time and costs involved.
The second approval went to Cairo-based brokerage Roa'ya Online for a gamified digital education platform targeting people aged 15 to 35. The platform will simulate the securities market, allowing users to learn about investing and trading through a simplified, interactive, step-by-step process.
FRA Chairman Islam Azzam said the approvals support the sandbox’s role in connecting innovation with practical application. He explained that it helps companies develop technological solutions and integrate them into non-banking financial products and services, improving market efficiency and responsiveness to participants’ changing needs.
Azzam added that testing solutions, including those powered by AI, can improve the customer experience and the quality of insurance and financial products. He emphasized that the FRA seeks to keep pace with global FinTech developments while maintaining market integrity and stability and protecting participants’ rights.
