During the past few years, financial technology has become the main driver of financial services at the global level, financial technology, which is often referred to as FinTech, is those techniques and technological tools that work on financial innovation and through which new business models, applications, and even financial products have emerged, and to determine the importance of Financial Technology We find that more than $160 billion US dollars have been pumped into investments in the financial technology sector during the last five years, and its expected returns are expected to be 265 billion US dollars until the year 2025. Perhaps the most prominent examples of financial technology applications are the use of mobile phones in banking services, or what is known as digital banks, as well as investment services via mobile phones and cryptocurrency. Thus, financial technology has become one of the most promising industries, which greatly helps in increasing the efficiency of financial services and expanding the base of their spread, which has a positive impact on the national economy. However, for providers of financial services through traditional methods, emerging companies in the field of financial technology represent a great challenge, as financial technology works. I have to provide smart services faster and more efficiently, as there are no strict rules or regulations like those that govern old institutions. With the acceleration of the pace of technological development, it has become difficult to contain new innovative ideas to meet market needs within traditional legislative frameworks. Since the pivotal role of financial technology in the financial sector is Banking involves improving customer attraction mechanisms, faster processing of complex transactions, achieving better financial inclusion, reducing the cost of services, providing advanced financial analyses, transferring knowledge, achieving transparency, and achieving financial stability, and thus this has been reflected in the performance of large financial markets, according to a Bloomberg Intelligence report. Bloomberg Intelligence The UAE ranks among the leading countries in advanced financial technology in the Middle East and North Africa (MENA), as the UAE owns 67 companies, followed by Turkey with 44 companies, then Jordan and Lebanon, each with 30 companies. According to the International Monetary Fund report, the UAE accounts for 30% of financial technology activities and enjoys being a preferred destination for technological operations due to the quality of communications and data infrastructure, which makes it a fertile environment for emerging companies in this field, which also encouraged major international companies to make Dubai and Abu Dhabi their business centers, and according to the FinIndex report, the UAE ranks 34th in the world, while Egypt ranks 60th. Looking at the experience of the United Arab Emirates in the past few years from 2017 until now in the field of financial technology, it is clear that its pioneering role came through the UAE’s commitment to supporting emerging companies and encouraging the adoption of… Technologies. For example, the implementation of the blockchain strategy was adopted in Dubai, where all government transactions are being transferred to blockchain technology by the current year, in addition to more than 50% of federal transactions at the state level, which has strengthened the smart economy and created job opportunities for entrepreneurship in the field of technology. Finance and outsourcing services. In addition to supporting technological innovation for regional and global startups in financial free zones, rich business accelerators, and an attractive incubator environment, such as the Dubai Smart Cities Accelerators, the Dubai Future Accelerators, and the Fintech Hive Accelerators of the Dubai International Financial Center, as these accelerators represent a platform that brings together various stakeholders, including stakeholders. Financial institutions, government agencies, technology companies, and entrepreneurs to break barriers, build confidence, and spread the culture of financial technology. Looking at Egypt and according to the report of the Central Bank of Egypt, we find that the size of the market represents 26% of the population of the Middle East and North Africa region, and the number of mobile phone users is about 93% of the population. The population, number of mobile Internet users exceeds 44% of the population, 67% of the population does not have bank accounts, and the financial illiteracy rate approaches 27%. All of this represents a huge market and creates a high demand for banking services and also requires increased work to raise awareness and eradicate financial literacy. In terms of financing, we find that there are more than 18 incubators and business accelerators working on financial technology with a financing volume of 1.5 billion pounds, in addition to the Central Bank’s initiative to support financial technology with an amount of one billion pounds. As for the legislative cover, Central Bank Law No. 194 of the year was issued. 2020, which includes in its fourth chapter the regulation of payment systems and services and financial technology for the banking sector. The government and the Financial Supervision Authority recently submitted to the House of Representatives a draft law to regulate financial technology for the non-banking sector, which aims to enhance financial inclusion and work to expand the base of beneficiaries of non-banking financial activities. Raise their efficiency, reduce the costs necessary to benefit from these services, and enhance and develop the uses of financial technology.
