Egypt regulator to introduce consumer financing services before end-2019

Egypt’s financial regulator plans to introduce consumer financing before end-2019 to expand funding options for consumers and businesses of all sizes, the body’s chairman announced on Tuesday.

Omran told reporters the regulator would put the proposal to the community dialogue in the next few days.

Speaking at the Egyptian Third Annual Leasing Conference in Cairo, Mohamed Omran said the regulator plans to put the proposal to the community dialogue soon.

Consumer financing is when a business offers financing to their customers. This allows consumers to get an advance or loan to spend money on products or services for family, household or personal uses repaid at a specified future date. Retailers, department stores, banks, and other financial institutions offer consumer financing.

The main advantage of consumer credit is that consumers can purchase goods and services and pay for them later. Consumers can purchase items they need when their funds are low. Consumer financing offers a backup form of payment and one monthly payment.

Consumer financing will be the seventh non-banking financing activities to be introduced by the Egyptian Financial Supervisory Authority (EFSA). EFSA offers capital markets, insurance, leasing, mortgage, factoring, and microfinance activities.