As part of its five-year strategy for 2021-2025, the PCMA has worked on enhancing the role of financial technology (fintech) in the non-banking financial sector under its supervision. This involves opening opportunities for financial service providers, including innovators and entrepreneurs, to offer fintech solutions.
In this context, the Digital Financial Services and Innovation Directorate has operated according to the PCMA’s policy aimed at utilizing modern regulatory and supervisory methods imposed by financial technology. These methods consider the non-conventional nature of fintech and align with international best practices and recommended guidelines for regulatory bodies. The aim is to create an encouraging and innovation-friendly environment for fintech-based solutions, with regulations and conditions primarily focusing on protecting users’ rights, maintaining financial stability, expanding non-banking financial sectors horizontally, reducing the costs of financial services and products, and promoting small projects and increasing financial inclusion.
The Impact of the Recent Aggression on the Activities of the Administration
The PCMA and the sectors under its supervision were not immune to these effects. The various impacts of the war affected their operations and the activities of different departments, including the Digital Financial Services and Innovation Directorate.
At the management level, several activities of the Directorate were postponed, such as the development of the “Ebtaker” platform. Additionally, no requests were received through the “Ebtaker” platform during the recent war on the Gaza Strip. Activities outlined in the executive plan for the national financial inclusion strategy were put on hold.
Moreover, there were delays in implementing many granted permissions for routine activities, such as the launch of the “iMashreq” platform by Al Mashreq Company. This was supposed to be a significant event to introduce the platform and kickstart its operations, offering comprehensive insurance sales services through an electronic platform.
Furthermore, some innovations faced difficulties in concluding agreements with related non-banking financial sectors. These sectors did not see the appropriate timing for investing in or dealing with these innovations or benefiting from them.
