MIDBANK has received approval from Egypt’s Financial Regulatory Authority to establish a digital finance company for small and medium enterprises.
The new company, MIDBANK Digital Finance for Small and Medium Enterprises, forms part of the bank’s strategy to expand its digital financial services and develop financing designed around the needs of SMEs. The approval was among those recently granted by the FRA, and the company will operate as a separate digital entity focused on this segment, while the bank continues to serve individuals and businesses through its existing channels.
Digital finance in the non-banking sector
The approval comes from the FRA, which oversees non-banking financial activities in Egypt, and aligns with the regulator’s efforts to promote financial technology in this sector. Its legal basis is Law No. 5 of 2022, which governs the use of financial technology in non-banking financial markets and instruments subject to the FRA’s supervision, including capital markets, insurance, mortgage finance, financial leasing, factoring, financing of small, medium and micro enterprises, and consumer finance. The law aims to enhance financial inclusion, expand the base of beneficiaries, and reduce costs.
Egypt’s fintech oversight is divided between two regulators. Business models tend to fall either under the Central Bank of Egypt, which supervises banking and payments, or under the FRA, which supervises non-banking financial services. Following the law’s issuance, the FRA issued regulatory decrees covering the incorporation, licensing, operation, and technical requirements of non-banking fintech companies, and in December 2024, it granted a fully digital non-banking fintech licence to Oliv Finance, a provider of digital SME working capital products. MIDBANK’s new company will operate within this FRA-supervised segment.
Part of a wider digital strategy
Alongside the new company, MIDBANK continues to upgrade its technology infrastructure and expand its digital services for individuals and businesses. According to the bank, these efforts are intended to simplify banking procedures, improve the customer experience, and strengthen its competitiveness as the banking sector develops.
MIDBANK expects the new company to contribute to digital financing for SMEs in Egypt. Key details, including the products it will offer, how it will assess and serve SME borrowers, and when it will begin operating, have not yet been disclosed, with the bank set to provide further information later.
