Egypt's Financial Regulatory Authority (FRA) has granted preliminary approval to Lumin Soft, making it the third company to receive such approval since the sandbox’s launch. This move allows the specialist in digital identity solutions to test innovative e-passport verification technology.
The approval is part of the FRA's efforts to promote the adoption of financial technology and expand digital services in non-banking financial activities. Lumin Soft, which specialises in digital identity, electronic verification and digital contracting solutions, will conduct live testing of its business model within the regulatory framework. Its project focuses on verifying non-Egyptian identities using electronic passports (e-passports) through Near Field Communication (NFC) technology. This enables an integrated digital pathway, reading and validating e-passport data per International Civil Aviation Organisation Public Key Directory (PKD) standards to ensure security and reliability.
BOOSTING FOREIGN INVESTMENT ACCESS
Islam Azzam, Chairperson of the FRA, emphasized the project's significance in an FRA statement. Azzam said such digital mechanisms represent an important step towards facilitating the entry of foreign investors into the Egyptian market and enabling them to access non-banking financial services. He noted that simplifying procedures for identifying investors and verifying their identities through secure digital channels would help strengthen foreign investment flows into Egypt. Azzam further added that adopting advanced technological solutions in financial services aligns with the government’s broader strategy to position Egypt as a regional fintech hub.
Lumin Soft’s project includes creating digital identities using e-passports and integrating with the Azimut Investments Egypt platform, enabling investors to access financial products within a regulated supervisory environment. Ahmed Khalifa, Executive Director of the FRA’s regulatory sandbox, said the project will help enable non-Egyptians to access investment services across various asset classes in the Egyptian market while enhancing the efficiency and competitiveness of the non-banking financial sector.
EVOLVING FINTECH LANDSCAPE
As the third entrant, Lumin Soft follows two predecessors.
Azzam said the sandbox is a key regulatory tool for supporting innovation, providing a supervised testing environment in which companies can trial new business models and technologies before introducing them to the market.
STRATEGIC ECONOMIC CONTEXT
Azzam said supporting digital innovation and strengthening the technological infrastructure of the financial sector would enhance the competitiveness of the Egyptian market and attract more fintech companies.
Khalifa described the project as a practical model for leveraging digital transformation to develop financial services.