The Information and Decision Support Center (IDSC) of the Egyptian Cabinet has made an official announcement regarding the country’s strategy of launching its first digital bank, which is scheduled to take place in Q4 2024. This follows the initial approval which was granted by the Central Bank of Egypt (CBE) to Egypt Digital Innovation Company, a subsidiary of Banque Misr, while the final launch is anticipated to take place once the second phase of the licencing process is completed.
The initiative will focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while also prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry.
The information was published in an IDSC report entitled “Neo Banks: The Path to Enhancing Financial Inclusion,” which provides an overview of digital banks, as well as Egypt’s progress in establishing these institutions and the prospects for neo banks. The report also highlighted that the country prioritised financial inclusion over the past years, a process that experienced significant development driven by supportive government policies.
These efforts are also part of the Financial Inclusion Strategy (2022-2025) launched by the CBE, which is aimed at economically empowering all segments of society through an inclusive formal financial system that provides quality and secure services at affordable costs, contributing to sustainable growth. Financial inclusion is a key component of Egypt’s Vision 2030 as well, particularly in the process of creating a competitive and diversified economy.
Egypt’s Vision 2023 was developed in order to focus on expanding access to financial solutions, while also promoting financial literacy and designing optimised financial tools to meet citizens’ needs. The report also notes that the country has been moving towards financial inclusion quickly, as the percentage representing citizens ages 16 and above who own and use financing transaction accounts surged from 27.4% in 2016 to 70.7% in 2023, marking a growth rate of 174%.
Furthermore, the CBE also issued “Licensing and Registration Rules for Digital Banks and their Supervision,” which came into effect on July 12, 2023, in order to enable the effective establishment and operation of digital banks in Egypt.
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