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Financial Inclusion through Digital Financial Services in Egypt

Progress towards Digitalization

Over 75% of Egyptian banks provide internet banking services to a significant customer base of 1.4 million users. Furthermore, mobile payment services have been exempted from expenses for a year, indicating a supportive regulatory environment.

Efforts Going Forward

The Central Bank of Egypt (CBE) is committed to driving the development of digital financial services in Egypt through various initiatives:

• Electronic Identity Checks (e-KYC): The CBE is studying the regulation of electronic identity checks using blockchain technology for various use cases, including e-KYC.
• Blockchain Technology: The CBE plans to leverage blockchain technology to enhance security and efficiency in digital transactions.
• Innovation Fund: A one billion pound innovation fund will be established to finance fintech companies that are either profitable or have a clear path to profitability but require additional expertise.

Innovation Fund

The CBE Fund targets companies that:

• Are profitable or have a clear path to profitability
• Need additional expertise to turn around or restructure their operations

This fund aims to support the growth and development of fintech companies in Egypt, fostering innovation and financial inclusion.

Digital Bank Initiative

The Central Bank of Egypt has announced the study of establishing Egypt’s first fully digital bank. This initiative will enable customers to conduct all transactions from the comfort of their internet-connected device without the need to travel to a branch.

Enhancing Cybersecurity

To reduce and prevent major cyberattacks, the Board of Directors of the Central Bank of Egypt has approved the establishment of the Computing Security Incident Response Team (CSIRT) for the banking sector. The CSIRT will coordinate IT security issues at financial institutions through centralized coordination.