CBE's Deputy Governor: Online Financial Transactions Worth EGP3 Tn Since the Beginning of the Year

Rami Aboul Naga, Deputy Governor of the Central Bank of Egypt, announced that the total value of online banking service transactions has exceeded EGP 3 tn in the past 6 months of 2023.

This statement was made during his speech at Seamless North Africa Conference 2023, held today under the auspices of the Central Bank of Egypt and Dr. Mostafa Madbouly, the Prime Minister.

Aboul Naga pointed out that approximately 20.3 million transactions were conducted through the InstaPay application, with a total value of EGP 112.7 bn, from March 2022 to March 2023. He also mentioned an increase in the number of issued payment cards Meeza to 33 million cards, and the number of mobile wallets to over 30 million.

Furthermore, the Deputy Governor of the Central Bank of Egypt revealed the launch of the third cohort of the Regulatory Lab, which specializes in crowdfunding activities based on lending.

He clarified that the Central Bank of Egypt has established regulatory controls for using the Instant Payment network InstaPay, payment tools, and electronic acceptance methods, leading to unprecedented growth rates in the volume and value of digital financial transactions in the local market.

Aboul Naga added that CBE has introduced several initiatives to support digital transformation, including the launch of the Regulatory Lab for financial technology applications as a testing environment for entrepreneurs to experiment with their tested applications.

CBE's Deputy Governor emphasized that the success of the financial technology system in any country requires the presence of several key factors, including a supportive and innovative environment.

He further mentioned the importance of establishing a regulatory and supervisory framework that supports financial technology activities and services, as well as the demand for such activities and services, which is enhanced by the size and readiness of the Egyptian market.

Aboul Naga pointed out that Egypt possesses all these factors, as 72% of Egyptian citizens use the internet, indicating a significant opportunity for financial technology to expand its services to various segments of society, including youth, women, SMEs, and micro-enterprises.

He called on all relevant government and regulatory bodies to harmoniously and integrally prepare the regulated environment for financial technology fields, making it conducive for investors and startups in this field, enabling Egypt to occupy a leading position in the financial technology sector in the regional map.

As a supporter and catalyst for the financial technology system in the Egyptian market, CBE has launched several initiatives aimed at supporting emerging financial technology applications in all stages, from idea to launch.

Aboul Naga explained that CBE has fostered young financial technology talent through Fintechology initiative, which has trained nearly 7,000 university students in collaboration with 25 government and private universities and the participation of 18 banks operating in the Egyptian banking sector.

Additionally, the Central Bank of Egypt has supported startup technology companies by creating collaboration opportunities and contracts between them and the banks operating in the Egyptian market.

The Deputy Governor of the Central Bank revealed that the Fintech Egypt initiative, affiliated with Central Bank of Egypt, has issued the new annual version of the Financial Technology System Report.

He clarified that the report highlights the most important and latest developments taking place in the financial technology system and its related sectors in the Egyptian market, as well as the initiatives and decisions issued to support it.

The report also reveals several positive indicators achieved in the financial technology system in the Egyptian market in 2022, including the increase in the number of operating startup companies in this field to 177 companies, a five-fold increase over the past five years.

Aboul Naga added that the report also demonstrates the success of startup companies in attracting investments of US$800 mn during the past year, confirming that financial technology remains a priority for investors despite the current global disruptions.