💪Egypt🇪🇬: By the end of 2024, the country’s first digital bank will be launched.

💪Egypt🇪🇬: By the end of 2024, the country’s first digital bank will be launched.

The launch is expected in Q4, following the completion of the second phase of the licensing process.

🔼The government is pushing for neobanking as it is concerned with achieving *financial inclusion*.

🔼 The percentage of financial inclusion, which represents citizens aged 16+ who have bank accounts and conduct financial transactions, has risen from 27.4% in 2016 to 70.7% in 2023, marking a growth of 174%.

🔼 The rise in the popularity of alternative payments in Egypt is directly linked to the increase in inflation. The annual urban inflation rate in August 2024 was 26.2%, significantly exceeding the market forecast of 25.1%. People are concerned about the need to protect their savings.

🔼 Context: Egypt, the most populous country in the Middle East and North Africa, until recently had the lowest level of financial service accessibility in the region. Overall, access is limited by the large number of rural populations and cultural factors, such as women’s dependency. For these reasons, Egyptians mostly rely on cash payments, and prefer to store their money not in banks, but... at the post office‼️

It will be interesting to see how the landscape changes with the introduction of neobanking.

#news #Africa

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