Following the green light from the Central Bank of Egypt (CBE), Egypt will launch its inaugural digital bank by the end of 2024. This groundbreaking development marks a key milestone in Egypt’s efforts to foster financial inclusion and innovation.
The Egyptian Cabinet’s Information and Decision Support Center (IDSC) announced that Egypt Digital Innovation Company, a subsidiary of Banque Misr, has received preliminary approval to establish the nation’s first digital bank. The final launch will be contingent on the successful completion of the second phase of the licensing process.
A Pillar of Financial Inclusion
This development aligns with Egypt’s broader vision of promoting financial inclusion. The CBE has been instrumental in driving this agenda through its Financial Inclusion Strategy (2022-2025). By providing accessible and affordable financial services, the government aims to empower all segments of society and contribute to sustainable economic growth.
Key Features of Digital Banks
Digital banks are fintech institutions that operate entirely online, offering a wide range of banking services without the need for physical branches. Digital banking facilitate the services from account opening to bill payments, all transactions are conducted through digital channels. While they share some similarities with traditional banks, digital banks often provide unique advantages such as streamlined processes, 24/7 accessibility, and potentially lower fees.
Egypt has made remarkable progress in expanding financial inclusion in recent years. The percentage of citizens aged 16 and above who own and use financial transaction accounts has surged from 27.4% in 2016 to 70.7% in 2023. This impressive growth rate underscores the country’s commitment to providing equitable access to financial services.
The launch of Egypt’s first digital bank is expected to further stimulate economic growth and innovation. By leveraging technology, digital banks can offer innovative products and services that cater to the evolving needs of consumers and businesses. As Egypt continues to embrace digital transformation, the country is well-positioned to become a leader in the fintech landscape.
