The Board of Directors of the Central Bank of Egypt “CBE”, chaired by Governor Hassan Abdullah, has preliminarily approved granting Egypt Digital Innovation Company, a subsidiary of the government-owned Bank of Egypt, the first license for a digital bank.
As per “Entarabi” the new bank will be launched after completing all procedures under the name “One Bank,” making it the first Egyptian digital bank.
These measures aim to accelerate the pace of customer adoption of digital services, aiding in the promotion of financial inclusion as directed by the political leadership during the past half-decade.
According to sources within the company, inspection and testing of the infrastructure and security of the new system have already been completed, with other procedures set to be finalized for operations to commence soon.
Established four years ago, Bank of Egypt founded Egypt Digital Innovation Company to launch the first digital bank, aligning with current technological advancements, expanding customer segments and products, and facilitating the provision of all technology-based banking services.
One Bank aims to offer a variety of solutions to enhance banking services in Egypt, providing tailored products aligned with customer needs using advanced technological techniques. The bank will digitally deliver its services, meeting the needs of all customers, including IT plans and cyber security strategies.
The Central Bank of Egypt issued regulations last July for licensing, registration, supervision, and oversight of digital banks. Market requirements necessitate the presence of digital banks offering all services and transactions online, thus making the development of digital banking services necessary, a goal One Bank aims to achieve.
Sherif El Bahiri, CEO of Egypt Digital Innovation Company, emphasized that with rapid technological advancements and increased internet usage, digital banking services have become essential to meet customer needs, save time, and effort.
The launch of One Bank represents a positive step towards improving communication between banks and customers, providing an advanced and flexible banking experience.
It is expected that the presence of an Egyptian digital bank like One Bank will enhance the digital economy in Egypt, stimulate innovation in the financial services sector, and strengthen Egypt’s position as a leader in financial technology adoption in the region.
The availability of digital banks can contribute to increasing financial inclusion in Egypt, allowing individuals in remote and underserved areas to access banking services easily online, thus enhancing economic and social development opportunities.
The launch of One Bank, the first Egyptian digital bank, marks an important step towards improving banking services, enhancing financial inclusion, and boosting Egypt’s position in the financial technology field.
Egypt Digital Innovation Company, a subsidiary of Bank of Egypt, was established in 2020 with the aim of creating the first digital bank in compliance with regulations issued by the Central Bank of Egypt. One Bank seeks to promote financial inclusion by facilitating access to banking services and products through the bank’s digital channels.
One Bank aims to offer a variety of solutions that contribute to the development of banking services in Egypt, providing tailored products in line with customer lifestyles through the use of advanced technological techniques.
One Bank will represent a significant addition by digitally delivering banking services that meet the needs of all customers through identifying target segments and products planned to be made available via the digital bank, including IT plans and cyber security strategies.
Market requirements currently necessitate the presence of digital banks offering all services and transactions online, which require continuous development.
One Bank aims to offer consistent services aligned with the state’s direction towards financial inclusion and digital transformation, in addition to being a natural evolution of banking services.
One Bank aims to launch in the fourth quarter of 2024 after completing the second phase of non-objection examination and obtaining the operational license.
It is worth mentioning that the Central Bank of Egypt issued regulations last July for licensing, registration, supervision, and oversight of digital banks.
Licensing requirements for digital banks stipulate that the largest shareholder must be a financial institution with a track record in similar activities, holding at least 30% of the total capital, and the issued and paid-up capital should not be less than two billion pounds if conducting all banking activities except large corporate financing. Financing such companies is possible with an increase in capital to four billion pounds.
