The Central Bank of Egypt (CBE) targets to cover 400 million merchandise in the Egyptian market through the mobile wallet system that was previously approved in 2013, said CEO and Chairman of Banque de Caire, Tarek Fayed.
Fayed made his comments during a virtual panel that was attended by Ahram online. The panel was held by the British-Egyptian Business Association (BEBA) on Tuesday to discuss Egypt’s new banking law and its role in supporting global competitiveness.
Fayed added that the CBE accelerated efforts over the past two years to activate mobile wallets in line with Egypt’s strategy of digital transformation and financial inclusion through applying QR Codes.
He also said that the high banking transaction cost will still stay at high unless the banking system fast-track their actions to adopt financial technology entirely.
“Its important to stress that adopting innovation instruments and diversifying the products introduced by the banks working in Egypt is needed to be able to attract more clients," said Fayed. "Banks need to also tap in to new sectors, including small and medium-sized enterprises (SMEs) as well as fintech to increase the level of financial inclusion,” he added.
On the new banking law, Former Deputy Prime Minister, Ziad Bahaa El-Din said that the law empowers the banking system in Egypt, adding that it does not set new policies to be implemented, but that it extends the right and soiled foundation for the banks to act.
The new banking law, No. 194 of 2020 (the “New Banking Law”) was issued on 15 September, 2020 and put into practice on 16 September, 2020 with a grace period for compliance with its provisions of one to three years from the issuance date.
The law replaces No. 88 of 2003.
Despite the impact of the coronavirus on the economy in general and on banks in particular, the Egyptian banking system is expected to remain stable in 2021, Moody’s said in a report issued in February.