Cairo - Mubasher: The startup company "Flind" obtained the license of the Financial Regulatory Authority (FRA) as the first digital non-banking financial institution (Digital NBFI) specialized in financing small and medium-sized enterprises.

Flend is the first platform in Egypt to be fully licensed as a digital non-banking financial institution for SMEs, and seeks to revolutionize the SME financing sector by introducing innovative digital contracts and electronic signatures, contributing to changing how SMEs access financing easily while setting new standards.

The company stated in a press release that this development reflects the Financial Regulatory Authority’s future vision and commitment to supporting innovation in the non-banking financial sector, as the Authority recognizes the transformative impact of digital technologies and their role in enhancing efficiency, transparency and financial inclusion. This step confirms the importance of the role played by regulatory bodies in enabling a modern financial structure that meets the needs of advanced companies and supports sustainable economic growth.

This step reflects the efforts of the Financial Regulatory Authority in digital transformation after completing the regulatory and legislative framework for digital transformation, as it issued in 2022 Law No. 5 of 2022 to regulate the use of financial technology in non-banking financial activities, followed by a number of decisions, including Decision No. 58 of 2022 regarding the conditions and procedures required for the establishment, licensing and approval of companies and entities wishing to practice non-banking financial activities through financial technology technologies, Decision No. 139 of 2023 regarding the equipment, technological infrastructure, information systems, protection and insurance means necessary for the use of financial technology to practice non-banking financial activities, and Decision No. 140 of 2023 regarding digital identity, digital contracts, digital registry, areas of use of financial technology to practice non-banking financial activities and compliance requirements.

The license enables Flend to provide a variety of services to small and medium enterprises, as it provides access to low-cost local bank financing, in addition to the possibility of offering competitive financing rates. It also allows working with legally binding digital contracts, which contributes to simplifying procedures and enhancing trust, which helps Flend to effectively bridge the financing gap for small and medium enterprises.

“We are delighted to be the first company to obtain a license from the Financial Regulatory Authority as the first digital non-banking financial institution, with our focus on financing small and medium enterprises,” said Nehal Helmy, Co-Founder of Flend. “Our strategy is to transform SME financing by leveraging advanced technology to quickly access financing by facilitating customer registration procedures, conducting advanced credit and risk assessments, and accelerating loan disbursement cycles.”

“We will be able to replace paper with digital contracts and e-signatures, reduce approval times from weeks to days, and ensure a transparent and efficient experience tailored specifically for SMEs,” she added.

With the support of Banque Misr, Digital Finance Company (DFIN), Plus VC Venture Capital Fund, and a number of prominent family offices in the region, Flend is committed to empowering vital sectors for the development of the Egyptian economy, such as the supply and sale of medicines, food and beverage distribution, retail, local industries, and export-oriented industrial activities. Flend provides flexible, reliable and tailored financing solutions tailored to the needs of these projects, supporting their growth and innovation and contributing to driving economic development in vital sectors.