E-Finance mulls joining Egypt digital banking licence race

Egypt’s leading fintech player, E-Finance is studying applying for a digital banking licence in the country, chairman Ibrahim Sarhan said in a bourse filling on Tuesday.

“… following the Central Bank of Egypt’s (CBE) recent issuance of licensing regulations for digital banks, we are currently assessing the viability of acquiring the digital banking licence, which would mark a major milestone in the Group’s growth and is in clear alignment with our investment strategy.” Sarhan stated.

He added that E-Finance already boasts a comprehensive technology infrastructure that serves tens of millions of customers annually across the country, “leaving us well-positioned to seamlessly integrate digital banking services across our operations.”

“… the key demographics that we target are formed of individuals that lack access to traditional financial services, presenting us with an opportunity to incorporate a substantial number of Egypt’s unbanked population into the formal financial system, supporting the CBE’s financial inclusion strategy, and elevating the Egyptian economy.”

Egypt’s central bank has recently announced new regulations for licensing and supervising digital banks, aligning with global trends in financial technology and catering to the needs of Egyptian customers. The new regulations are in line with the Egyptian government’s efforts to support innovation and foster the growth of the digital economy.

To date, Misr Digital Innovation (MDI), part of Egyptian state lender Banque Misr, is the first to formally apply to the Central Bank of Egypt (CBE) for a digital banking licence in the country. Other players in the market have expressed interest in applying for a digital banking licence, including Orascom Financial Holding (OFH) and fintech company OPay, and Egyptian digital payments company Fawry.