Egypt's First Digital Bank Launching Q4 2024 to Boost Financial Access

Egypt’s first digital bank will launch in the fourth quarter of 2024, marking a significant step forward in the country's financial inclusion efforts. This development comes after the Central Bank of Egypt (CBE) granted initial approval to Misr Digital Innovation Company, a subsidiary of Banque Misr. The final launch is expected once the second phase of the licensing process is complete.

The announcement was made in a report by the Information and Decision Support Center (IDSC) of the Egyptian Cabinet. The report provides an overview of digital banks, Egypt’s progress in establishing these institutions, and the future prospects for neo (or digital) banks in the country.

Over the past few years, Egypt has made financial inclusion a priority, supported by government policies aimed to create accessible and affordable financial services. These efforts are part of the Financial Inclusion Strategy (2022-2025) launched by the CBE, which aligns with Egypt’s Vision 2030 to expand access to financial services, promote financial literacy, and develop innovative financial products to meet citizens' needs.

The percentage of citizens aged 16 and above who own and use financial transaction accounts rose from 27.4% in 2016 to 70.7% in 2023. This represents a growth rate of 174%, one of the highest among peer countries.

Digital banks offer services similar to traditional banks but operate entirely online without physical branches. Customers can open accounts, transfer money, and pay bills through online platforms or mobile apps. While there is some overlap between digital and traditional banks, key differences such as account opening processes, credit scoring, accessibility, and customer service may influence customers' choices.