FinTech e-Finance considers acquiring digital banking license

Egyptian FinTech, e-Finance for Financial and Digital Investments, is considering applying for the Central Bank of Egypt’s digital banking license, Ibrahim Sarhan, Chairman and Managing Director of e-Finance said in a recent statement.

Sarhan stated that e-Finance is looking to obtain the license considering the group's extensive experience in financial technology, and added that it is studying the license’s requirements with its local and international partners.

Last week, the Central Bank of Egypt (CBE) announced amendments to its rules and regulations pertaining to the licensing, registering, and supervising of digital banks as part of the government’s efforts to stay ahead of global advancements within the financial technology (FinTech) industry and support the country’s transformation into a digital economy.

According to the newly issued changes, digital banks must maintain a minimum issued and paid-up capital of EGP 2 billion ($65 million). The CBE also noted that these new guidelines are in line with Egypt’s vision of transitioning into a cashless society, and its efforts to promote financial inclusion and boost the FinTech industry.

During the first quarter of the year, e-Finance’s consolidated profits rose by 44% to record EGP 285.47 million. The shares of the parent company’s shareholders during the first quarter of 2023 amounted to EGP 281.94 million in profits, compared to EGP 200.32 million during the same quarter of 2022.

Local epayments company, Fawry, is also looking to acquire the digital baking license, according to a recent interview with Fawry CEO Ashraf Sabry. He stated that Fawry in talks with the KSA’s central bank as it looks to expand to several countries, noting that the company is seeking to finalize its expansion plans this year, and is eager to implement it next year.