Digital Banking in Egypt

What is Digital Banking and why it is the future in Egypt?

Digital banking refers to using online and mobile platforms to manage your finances. Instead of visiting a physical branch, you can check account balances, transfer money, pay bills, and even apply for loans through a computer or smartphone app.

Digital banking is the future of banking in Egypt for several reasons:

1. Convenience: Digital banking allows customers to access their accounts, transfer money, pay bills, and perform other transactions anytime, anywhere, without the need to visit a physical branch.
2. Cost-Effective: It's cheaper for banks to operate digital channels compared to maintaining physical branches, which can lead to cost savings that can be passed on to customers in the form of lower fees and better interest rates.
3. Financial Inclusion: Digital banking can reach people in remote areas where traditional banks may not have branches, thus promoting financial inclusion by providing access to banking services to a wider population.
4. Security: With advanced security features like encryption, biometric authentication, and transaction monitoring, digital banking can provide a secure environment for conducting financial transactions.
5. Technological Advancements: Egypt has seen significant advancements in technology infrastructure and internet penetration, making it conducive for the adoption of digital banking services.
6. Youth Population: Egypt has a large youth population who are tech-savvy and prefer digital solutions for their banking needs.
7. Government Initiatives: Government initiatives to promote digitalization and financial inclusion, such as the National Payments Council, further drive the growth of digital banking in Egypt.

Licensing Process and Requirements:

To obtain a digital banking license in Egypt, institutions must meet specific criteria:

• Minimum issued and paid-up capital of at least EGP 2 billion (or EGP 4 billion for financing large companies).
• The majority shareholder must be a financial institution with ownership of at least 30% of the total capital and relevant experience.

Upcoming Launch:

• Egypt is set to launch its first-ever digital bank called “onebank” in the last quarter of 2024.
• This initiative promises to reshape the banking landscape, offering greater accessibility and a more digitally-driven financial future for the country

Several companies, including Fawry and eFinance, have expressed interest in applying for digital banking licenses.