According to Rami Aboulnaga, Deputy Governor of the Central Bank of Egypt (CBE), the CBE is dedicated to maintaining financial stability and increasing economic participation by staying current with the latest advancements in monetary systems.
Speaking at the 27th Cairo ICT exhibition on behalf of the CBE governor, he stated that the organization has supported and promoted economic systems in the banking and financial sectors. To turn Egypt into a regional hotspot for the financial technology sector in Africa and the Middle East, it launched an ambitious financial strategy for innovation and technology. This strategy increased the number of businesses operating in the sector from 32 in 2017 to 177 in 2022, bringing in about $800 million.
The CBE and Banking Sector Law No. 194 of 2020 includes a section on the regulations of economic systems, electronic payment systems, and services.
He continued by saying that the CBE’s regulations for licensing, registering, monitoring, and supervising online banks have facilitated the transition to them. These regulations pave the way for a new generation of Egyptian banks to offer their customers comprehensive digital banking services.
Financial Tech Uses
To support emerging monetary technology applications from conception to launch, the CBE launched several initiatives. With the involvement of 18 banks operating in Egypt, the FinYology program, which trained almost 7,000 college students in assistance with 25 universities, both public and private, and the FINTEKRS initiative—which aims to support economic technology innovators in the regions—were both launched by the bank. The bank also introduced the governmental sandbox for economic technology applications, a testing environment that enables entrepreneurs to trial their novel applications.
The national card payment system “Meeza” was introduced in December 2018 and helped increase the number of electronic payment cards to more than 62 million cards in the Egyptian market. The CBE also pays close attention to developing the infrastructure for electronic financial services in Egypt. In 2017, it successfully launched the Mezza online system for mobile phone wallets, bringing the total to over 36 million.
He claimed that the introduction of both the InstaPay software and the federal system for quick payments “IPN” in March 2022 was one of the most crucial pillars in the infrastructure for electronic financial services, which the CBE relies on in its transition to a cashless society. More than 6.2 million people used the InstaPay program.
The CBE’s efforts to encourage the development of electronic payment methods led to a significant increase in the number of ATMs and electronic points of sale, reaching more than 23,000 points.
Online Initiatives
In February 2023, the CBE, according to Aboulnaga, published the regulations governing card programming services on digital device programs. These regulations will enable the activation of services of numerous foreign businesses, including Apple Pay, Samsung Pay, etc., as well as businesses in monetary systems.
He added that the CBE is engaged in several initiatives to build Egypt’s infrastructure for electronic financial solutions.
Aboulnaga added that one of these projects is the Electronic Know Your Customer (eKYC) project, which will enable customers to open accounts and authenticate transactions electronically. This project can aid in financial inclusion and develop an advanced infrastructure for electronic payment service providers (PSPs) so they can offer customers cutting-edge, innovative services.
According to Aboulnaga, the bank has a strong emphasis on cybersecurity and has adopted an integrated vision to improve the banking infrastructure’s capacity and offer a stable and accommodating electronic environment for the nation’s plans for financial inclusion and digital transformation.
He emphasized that the CBE has created a separate cybersecurity industry with the first regional center for economic field early response and prediction of computer emergencies. In order to conduct a self-assessment of the level of security preparation and the presence of adequate security settings and standards, banks and financial institutions rely on the first regulatory framework for security, which it likewise took the lead in developing and issuing.
As the CBE released a bundle of activities and measures, he emphasized that the enhancement seen by economic technology and creative applications for electronic payment has an impact on financial inclusion and enhances development opportunities for emerging, microscopic, modest, and medium enterprises and innovation.
Through the NilePreneurs Initiative, which the lender launched in 2019 in collaboration with the finance industry, many colleges, and local and international bodies, Aboulnaga explained that the CBE worked to offer technical support and non-financial and consulting services to businesses and owners of sub, small, and medium businesses. By offering a variety of technical assistance programs as well as non-financial and consulting services, such as business development, incubation, digital transformation, and innovation support programs, it aims to foster an environment that is supportive. They want to encourage these tasks and businesses to grow.
He emphasized that the NilePreneurs initiative helped over 153,000 clients and projects receive more than 386,000 non-financial and consulting services, and it also made it easier for EGP 4.7 billion in funding to be granted through 81 business development service centers spread across 23 governorates.
Additionally, through incubation, digital transformation, and innovation support programs, the effort supported over 1,000 start-ups and small and medium businesses. Through the project’s various programs, this resulted in more than 55,000 job opportunities, both directly and indirectly.
In line with international practices and sustainable development goals to reduce hunger, achieve sustainable economic growth, and lower disparity for all, in addition to the economic empowerment of women, he emphasized that developing the infrastructure and technological program is an important focus of the financial inclusion strategy 2022–2025.
68% of the Population is Financially Included
Aboulnaga asserted that economic systems and electronic transformation, along with efforts to increase financial awareness and education, which are crucial for the economic system, play a crucial role in facilitating the access of the target groups to electronic products and services at low cost. In order to coordinate efforts and raise financial literacy among citizens, the CBE, according to him, is now working with all appropriate authorities in the nation to develop and implement the national plan for financial education.
He added that by providing a network of branches and ATMs for those with specific needs, the CBE has worked to make it easier for them to access bank services and products. Additionally, it has issued instructions to help young people aged 16 and older gain access to bank services and products that have been created to meet the needs of this class and to stimulate innovation, craftspeople, and liberal occupations to deal with banks by offering an economic activity account with straightforward procedures.
He emphasized that as a result of all these initiatives, the financial inclusion rate increased by 163% from 2016 to about 68% of the total population aged 16 and older in June 2023.
2022 Daily News Egypt SyndiGate Media Inc. (Syndigate) provided the service. data.