Flend secures Egypt's 1st FRA digital NBFI license

Updated 12/29/2024 8:19:00 AM

Arab Finance: Flend, a financing platform dedicated to small and medium-sized enterprises (SMEs), has received approval from the Financial Regulatory Authority (FRA) to become Egypt's first regulated digital non-bank financial institution (NBFI) for SME finance, as per a press release.

The platform utilizes digital contracts and e-signatures to streamline the funding process, making it more accessible and efficient for SMEs.

Egypt's SME sector faces a financing gap exceeding $50 billion, according to the International Finance Corporation (IFC).

Flend seeks to address this shortfall by offering digital solutions that help businesses access necessary funding.

The platform leverages data-driven systems to lower operational costs, enhance loan servicing, and create partnerships with digital marketplaces, e-commerce platforms, payment service providers, and logistics companies.

The FRA license enables Flend to provide financing at competitive rates while maintaining governance standards and offering legal safeguards for lenders. These measures help ensure a reliable and accessible system for SMEs seeking financial support.

The platform’s use of digital tools further simplifies the borrowing process and improves trust between lenders and borrowers.

With support from organizations such as Plus VC, Banque Misr, Digital Finance Holding, and other regional investors, Flend focuses on tailored financing solutions that address the needs of SMEs in key sectors.

"We are delighted to be the first to secure the Financial Regulatory Authority (FRA) Digital Non-Bank Financial Institution (NBFI) license, with a focus on SME Finance” said Nehal Helmy, Co-Founder at Flend.

“Our strategy at Flend is to transform the SME financing landscape by addressing critical need for fair, fast and flexible SME financing, leveraging proprietary technology to provide seamless onboarding, advanced risk assessments, and efficient loan disbursements. We are confident by obtaining this license we can replace the cumbersome paperwork with digital contracts and e-signatures, cut approval times from weeks to days, and ensure a transparent and efficient experience tailored to SMEs," she added.