“The world is witnessing a major leap in multiple uses of technology to drive innovative financial services,” Ayman Hussein, deputy head of the Central Bank of Egypt (CBE) for Payment Systems and IT, told participants of the Arab-African Youth Platform attending the “Impact of Financial Technology and Innovation on the Region” panel discussion. Reviewing the CBE's strategy, Hussein said that “Egypt is keen on keeping abreast of technological developments in this crucial field”. He explained that the bank is implementing an integrated plan to transform Egypt into a regional hub for financial technology in the Arab region and Africa. The plan links Egypt's sustainable development 2030 Vision on the one hand, and the needs and aspirations of the Egyptian market on the other. “Financial technology applications have many benefits. They provide financial services that meet the needs of customers at competitive prices, contribute to reducing the overheads of financial institutions and maximise returns and reduce the risks to which they are exposed,” he said. In 2018 the CBE introduced regulations for cashless payments using mobile phones, enabling customers to transfer money and pay bills using their smart phones. According to a report prepared by Arzan, a venture capital firm investing in innovative tech start-ups in the MENA region, the most advanced fintech players in the Egyptian market are payment service and mobile wallet providers, both of which have been adopted by banks and telecom providers. Meanwhile, segments of the financial sector that have attracted large players in the global markets are under-populated in the Egyptian market, likely due to regulations and lack of support. They include personal finance, wealth management, artificial intelligence, driven fintech, digital banking and crypto-currencies. Hussein stressed the importance of improving cyber-security to provide protection for customers and build confidence among potential users and providers of digital financial services. He revealed that a cyber-security centre for the banking sector will be launched in late 2019. “This centre will take proactive insurance measures, deal with accidents and save digital forensic evidence,” he said. A two-year training programme has been launched with the aim of graduating 100 specialists in information security for the banking sector and increasing the technical skills of workers in this vital field. Recent studies, Hussein said, have shown that Egypt is in a good position to secure a leading role in the financial technology industry. “In Egypt there is a great demand for financial services and a support system is in place that includes banks, telecommunication companies, electronic payment companies, insurance companies, regulatory institutions, infrastructure providers and business incubators, accelerators and investors. Moreover, we have a major advantage in our young workforce. Young people are the cornerstone of the financial technology industry,” he said. The discussion panel reviewed the joint ecosystem efforts needed to incubate financial technology and other digital financial services within the region and stressed that digital illiteracy is a barrier to financial technology. The panel presented solutions to overcome digital illiteracy and stressed the goals that must be achieved. They include “a comprehensive development vision to improve the financial inclusion of small and medium enterprises” and the selection of appropriate mechanisms to address the requirements of banks.
