The remarks were made during a roundtable hosted by the company on Monday, where executives answered Ahram Online's questions about how monetary easing in Egypt could reshape consumer financing amid regional tensions and what regulatory measures are still needed to support the country's non-banking financial sector.
Egypt’s non-banking financial sector (NBFS) is now a major and rapidly growing part of the country’s financial system. As of FY2025/2026, it accounts for about 54 percent of Egypt’s total financial ecosystem, surpassing traditional banking in its share of overall financial activity.
The sector’s total financing to the private sector and households reached EGP 1.4 trillion by the end of 2025, up from EGP 1.1 trillion in 2024. This represents a 54.6 percent year-on-year increase in financing granted between January and October 2025, compared to the same period in 2024.
Growth has continued into 2026, driven in part by new fintech regulations and the expansion of digital payment networks.
Speaking to Ahram Online, Youssef Abdel-Ati, Group Chief Financial Officer at Contact Financial Holding, said the Central Bank of Egypt (CBE) has reduced interest rates by around 825 basis points, or 8.25 percentage points, over the past nine months, significantly changing financing conditions across the market.
While global economic trends and regional geopolitical developments make it difficult to predict the future direction of interest rates, Abdel-Ati said the Egyptian market is performing better than it has over the past five years in terms of growth.
He added that the market has demonstrated its ability to operate efficiently even during periods of elevated borrowing costs, citing the strong quality of corporate credit portfolios.
Commenting on the sector's regulatory environment, John Saad, group CEO and managing director of Contact Financial Holding, said legislative reforms introduced in recent years have laid the groundwork for expanding financial inclusion in line with the state's strategy.
Saad said the next stage should focus on leveraging digital channels to broaden access to financial services. He highlighted the Ministry of Communications' planned Digital Electronic Identity initiative as a key step towards expanding the customer base while strengthening risk management through artificial intelligence and data analytics.
He added that the priority for the non-banking financial sector is no longer introducing new legislation, but rather activating existing regulatory mechanisms, particularly the Electronic Know Your Customer (E-KYC) framework, and ensuring effective implementation to deliver a seamless customer experience.
Saad also pointed to the growing adoption of digital payment solutions, including InstaPay and other electronic payment platforms, as evidence of changing consumer behaviour. He said the shift has contributed to a noticeable decline in cash usage over the past three years, creating a stronger technological foundation for the continued development of Egypt's financial sector.
The non-banking landscape is overseen by the Financial Regulatory Authority (FRA), while the CBE supports broader financial inclusion goals. The sector is seen as underpenetrated relative to Egypt’s large population and favourable demographics, which include annual population growth of around 2.4 million people. This makes it a prime area for future expansion, especially for serving unbanked individuals and small businesses.
The main segments of the non-banking financial sector include microfinance, consumer finance and buy now, pay later (BNPL) services, financial leasing and factoring, financing for small and medium-sized enterprises (SMEs), mortgage finance, insurance, and capital market activities.
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