(MENAFN- Daily News Egypt) The Financial Regulatory Authority (FRA) has allowed brokerage and asset management companies to open customer accounts online.
According to the statement addressed to brokerage firms and asset management companies, the decision is an activation of the digital transformation steps that the Egyptian state is currently following.
Mohamed Maher, head of the Egyptian Capital Market Association (ECMA), said that the entity has the technological infrastructure required for the online process.
He told Daily News Egypt that the entity is in the process of adopting electronic signatures to allow customers to conduct all transactions electronically without visiting branches.
Ehab Rashad, Vice President of Mubasher Capital Holding, said that the company has the technological infrastructure required for the online process immediately.
He explained that the company is currently completing the documents required to submit the business model to the department concerned with financial control.
Rashad said that facilitating procedures is in the interest of the market, and drives the required diversification among investor groups, especially young people, given the nature of the new generation.
Mohamed Mostafa, Managing Director of the Arab African International Securities (AAIS), said that right now is the most proper time for the step announced by the FRA.
He added that financial products have become more diversified with a higher demand from the market. He explained that the only procedural obstacle was the expansion of electronic signature operations, which has become widespread at a number of companies in the market.
Amr Farouk, Managing Director of Tycoon Securities Brokerage, stated that the FRA's new decision will attract new customer segments to the stock market which will impact the performance of brokerage firms.
He pointed out that Tycoon is currently working on finalizing its own electronic application that enables electronic signature.
Mohamed Farouk Masoud, Managing Director of Global Invest Securities, stated that the FRA's decision came after demands from brokerage firms to authorise electronic signature, expecting it to increase the number of active investors in the market.
Mohamed Lotfy, managing director of Ostoul Securities Brokerage, said that the FRA is working to facilitate the procedures for contracting with clients to increase the volume of trading. Contracting with clients often takes time. However, with the new decision, a lot of procedures will no longer be time consuming.
He pointed out that the company's application will be added to the online contract after obtaining the authority's approval and before its launch.
Mohamed Hassan, Managing Director of BLOM Asset Management, said that technological transformation is necessary to keep pace with the global economy, and that technological transformation will help increase trading volumes, but with slow growth at the beginning. He indicated that the transformation will attract more foreign investors to the Egyptian market.