Eng. Ayman Hussein “First Undersecretary of the Central Bank Governor for the Technology Sector: Financial technology has become an essential part of our daily life

More than 1 billion electronic transactions worth 2.8 trillion Egyptian pounds were executed during the past year

Launching the Innovation and Technology Fund with a capital of 1.3 billion pounds

On March 6, 2022 | Time 12:21 PM

Written by: Sherine Mohamed

Engineer Ayman Hussein, First Deputy Governor of the Central Bank for Information Technology, confirmed that technology has become an essential part of our daily life, and a necessity imposed by the requirements of the present and future aspirations, and there is no doubt that the banking sector is fully aware of the importance of technology, because of its ability to achieve a breakthrough in efficiency and effectiveness. Providing financial and banking services.The Central Bank’s interest in digitizing financial services comes in light of the integration with the goals and vision of the National Payments Council headed by His Excellency President Abdel Fattah El-Sisi to transform into a society less dependent on banknotes. A local system of its kind, independent and capable of providing the same services as foreign payment networks effectively and efficiently, in order to avoid the national economy from any effects that may result from the disruption of these external networks for any emergency event. In providing more digital banking services, which enhanced the banking sector’s ability to overcome many of the obstacles it was facing to provide Banking services and access to all segments of society, which had a great impact on increasing the ability of the banking sector to respond quickly and flexibly to the requirements of the emerging Corona Virus pandemic period, as more than 1 billion electronic transactions worth 2.8 trillion Egyptian pounds were implemented during the past year. Its catalytic and supportive role for the financial technology industry, the Central Bank of Egypt launched the financial technology and innovation strategy in March 2019, which is in line with Egypt’s 2030 vision for digital transformation and sustainable development, with the aim of transforming Egypt into a regional center for the financial technology industry at the Arab and African levels. The Central Bank of Egypt is laying the necessary legislative and regulatory foundations to support and stimulate the targeted digital transformation by dedicating an entire chapter to payment systems and services and financial technology in the Central Bank and Banking System Law No. 194 of 2020, and the Central Bank of Egypt is currently working, in cooperation with the Financial Supervisory Authority, to issue a new law To set the legislative framework required to benefit from alternative financing services and arranged financial technology activities And because the Central Bank is well aware of the importance of human cadres in achieving the objectives of the financial technology strategy, it has been keen to support young talents and entrepreneurs in this important field, and provide them with a supportive environment locally and globally. In the past few years, a number of initiatives have been launched, for example, the initiative to integrate financial technology projects into university students' graduation projects, and the FinYology initiative for youth in more than 15 Egyptian and international universities, as well as many banks operating in Egypt; launching the Academy of Fintech Program; All this in cooperation with many local and international bodies and entities. In addition to these efforts to achieve the targeted digital transformation, the Central Bank launched the regulatory laboratory for innovative financial technology applications as a disciplined testing environment that allows financial technology entrepreneurs to test their innovative applications, taking into account the full rights of customers. The Central Bank of Egypt to promote the financial technology industry continues unabated. The “Fintech Egypt” platform affiliated to the Central Bank, which was launched in 2019, issued the “Finance Technology Perspective 2021” report, which is the first integrated report that monitors financial technology developments in the Egyptian market, as an initial step To provide an integrated vision for all parties of the financial technology system in Egypt. The report revealed the unprecedented growth that Egypt witnessed in the field of financial technology and the sectors feeding it over the past few years, as the volume of financial technology investments increased from 1 million dollars in 2017 to 159 million dollars. The number of emerging financial technology companies witnessed a huge boom, rising from only two companies in 2014 to 112 companies In more than 14 sub-sectors of innovative financial technology sectors. In parallel with this great development in financial technology, Egypt has witnessed a significant increase in payment tools and electronic means of acceptance during the last period, which would support the transition to a digital economy and a society less dependent on cash. The number of bank cards reached about 54 million, including 22 million advantage cards. More than 25 million wallets were reached in mobile phone wallets, in addition to the deployment of 740,000 electronic sales points and more than 18,500 ATMs throughout the country.

He stressed that the ambition of the Central Bank under the leadership of the governor has no limits, and this year will witness the launch of many important projects related to financial technology, such as the launch of the instant payments network soon, which represents an unprecedented boom in financial and banking transactions in the Egyptian market, as it will enable citizens to carry out their financial transactions and bank transfers. Between the various accounts in all banks in an instant, 24 hours a day, seven days a week, even on holidays and vacations. The Technology and Innovation Support Fund will also be launched with a capital of more than one billion three hundred million Egyptian pounds (the National Bank of Egypt, Banque Misr, and Cairo Bank), In addition to the opening of the Financial Technology Center Grid, which aims to strengthen and advance the financial technology system within the Egyptian market, and work to bring together all parties of the financial technology system under one roof. Also, work is underway to launch a system for electronic customer identification (EKYC), which will enable citizens to open their bank accounts electronically, without the need to go to the bank’s headquarters, in addition to expanding the establishment of digital banks that provide services Banking through digital channels or platforms using modern technologies. Undoubtedly, securing banking transactions and cyber security represents a great challenge in light of digital transformation and continuous technological development, and from this point of view, the axis of securing banking transactions has acquired a great priority within the integrated vision of the Central Bank to expand in Digital financial transactions, and this was reflected in the launch of an integrated center for information security, full of trained cadres and competencies, as the center aims to enhance the ability of banking institutions to confront cyber threats, by formulating and launching several strategic initiatives to raise awareness of the best solutions and advanced cyber and security technologies The efforts of the Central Bank in the areas of financial technology, electronic payment systems, cybersecurity and financial inclusion, with the support of efforts to spread financial culture and attention to youth, women, people of determination and the elderly, have been clearly reflected in the best practices and global standards used in the field of safe digital transformation. On the increase in financial inclusion rates in Egypt, which reached 56.2% in December 2021, which contributes to improving the standard of living of individuals and reducing poverty, and enhances the achievement of the goals of the state’s vision for sustainable development 2030. He added that the role of the Central Bank of Egypt is no longer limited to the supervisory role that is based on setting supervisory rules and regulatory procedures and ensuring the extent of commitment of all parties to them only. Rather, it has a developed role as a catalyst and supporter of the process of change, development and innovation in relation to financial and banking services. From this standpoint, the Central Bank is leading efforts to expand the use of financial technology applications in the Egyptian banking market, with sincerity and without sparing any effort along with all parties of the banking sector and our partners from The concerned ministries to achieve our future vision of digital transformation, and the beginning of a new era of digital banking services in a manner that complies with the requirements of the new republic.