Egypt’s Banque Misr, led by Chairman of the Board of Directors, Mohamed El-Atreby, has officially applied for a digital banking license from the Central Bank of Egypt. This move comes after the Central Bank recently issued 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 were developed in line with the provisions of the Central Bank and Banking System Law of 2020, which recognized the concept of digital banks and their services delivered through modern technological platforms. This initiative is part of the government’s ongoing efforts to support innovation and foster the growth of the digital economy.
Mohamed El-Atreby revealed that Banque Misr’s application seeks an authorized capital of 2.5 billion pounds and a paid-up capital of 2 billion pounds for the digital bank. The bank has also received offers from foreign partners interested in participating in the venture.
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To obtain the digital banking license, certain requirements must be met, such as having an issued and paid-up capital of at least 2 billion pounds, except when financing large companies, in which case the capital requirement is increased to 4 billion pounds. Moreover, the largest shareholder must be a financial institution with prior experience in similar activities amounting to at least 30% of the total capital value.
Among the prerequisites for acquiring the license is the submission of a comprehensive feasibility study that outlines the target customer segments and the planned banking products. Additionally, the study must include information technology plans and cybersecurity strategies. Digital banks are subject to the same regulatory oversight and supervision as traditional banks operating in Egypt, including laws and controls to combat money laundering and terrorist financing.
These new guidelines align with the country’s vision of reducing reliance on cash, enhancing financial inclusion, and creating a favorable environment for the financial technology industry. Digital banks are expected to offer banking products and services in an innovative and convenient manner, catering to various segments of society, including micro, small, and medium enterprises, as well as the youth.
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Banque Misr is determined to provide a unique and exceptional digital banking experience by bringing in experts from banking, technology, and communications sectors. The bank aims to become the first digital bank in Egypt, offering unprecedented electronic banking services and alternative channels to cater to the evolving needs of its customers.
Akef El Maghraby, Vice Chairman of the Board of Directors of Banque Misr and Chairman of the Board of Directors of Misr Digital Innovation Company, highlighted that they have been preparing for this step by establishing the Misr Digital Innovation Company, a subsidiary of Banque Misr. This entity is responsible for launching the first digital bank in Egypt, ensuring a powerful and seamless electronic banking experience while providing advanced banking services through alternative channels.
The introduction of digital banks is expected to attract new customer segments, particularly the youth, marking a significant advancement in banking services provided by Banque Misr, a pioneer in banking services not only in Egypt but also in the wider Arab region.
Opay, a leading African fintech company, recently expressed intentions to to join the competition for the digital banking license in Egypt. Opay has gained significant traction in various African markets with its digital payment solutions, and now, it sets its sights on Egypt to offer innovative digital banking services. Opay aims to leverage its experience and technology to cater to the diverse financial needs of Egyptian consumers.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard