Egypt’s CBE allows banks to open service units to expand financial access nationwide

Egypt’s central bank announced new instructions on Monday allowing banks to establish service units outside their traditional branches, known as “points of presence (PoPs), aiming to expand access to banking and financial services nationwide.

The move is designed to help individuals and micro, small, and medium enterprises (MSMEs) access high-quality banking services, especially in areas without bank branches. Services offered at these units include account opening, loan issuance, card delivery, fund transfers, ATM transactions, financial advisory services, and financial literacy programmes.

The instructions define three types of units: mobile units, fixed small outlets in community centres or commercial spaces, and temporary units for financial education and promotional activities.

Mobile units include specially equipped buses or vehicles that can travel to remote locations to provide core banking services. Fixed units consist of small, low-cost banking outlets that can be set up within community centres, youth centers, agricultural cooperatives, or commercial spaces. Temporary units are designed for short-term deployment to deliver financial literacy programmes, promote banking services, offer advisory support, and provide selected banking transactions in areas with limited or no permanent banking presence.

The central bank said the measures align with international best practices and aim to enhance financial inclusion, particularly for women, youth, and people with disabilities, while encouraging informal economy projects to transition into the formal sector.

Egypt has seen significant growth in financial inclusion, with rates rising 204 per cent between 2016 and 2024, while bank financing for MSMEs increased by 381 per cent during the same period.

Attribution: Amwal Al Ghad English