Egypt to launch its first digital bank
The Central Bank of Egypt (CBE) has granted Misr Digital Innovation (MDI) preliminary approval to launch the country's first digital bank.
Called Onebank, the digital bank will launch in the fourth quarter of 2024 after completing the second phase of its licensing.
"Onebank aims to promote financial inclusion by offering banking services and products smoothly through its digital channels," MDI's statement said.
Onebank will provide fully online services, aiming to deliver secure and convenient banking solutions to a broader spectrum of the Egyptian population. Unlike conventional banks that necessitate in-person visits to branches, the fully online bank will allow customers to create an account and perform all their banking activities within minutes digitally.
The North African country embarked on its journey to establish its first neobank in 2023 when the CBE introduced a regulatory framework for digital banks in the country.
A subsidiary of banking company Banque Misr, MDI said that Onebank will offer a diverse range of banking solutions that contribute to the development of financial services in Egypt.
Egypt's journey to establish digital banks
The CBE's regulations allowed for the establishment and operation of digital banks, aligning Egypt with global trends in the financial technological market.
Misr Digital Innovation CEO Sherif El Behery. (Source: Misr Digital Innovation)
MDI's Onebank was the first to submit an official application for the license. However, the company will not be the only digital bank in Egypt for long. Several banks and financial institutions, including the National Bank of Egypt, Emirates NBD, Orascom Financial Holding (OFH) and Ostoul Securities Brokerage, have all shown interest in launching their own digital banks.
Digital banking evolution in Africa
Egypt launching its first digital bank comes at a time when the World Economic Forum has called Africa the world leader in digital banking, with the region boasting the highest number of services, account holders and transactions.
"The rise of mobile and digital banking has been instrumental in providing financial access to millions of Africans, especially in areas where traditional banking networks do not reach," the World Economic Forum said.
Egypt is joining other African countries that have thriving digital financial institutions, like South African TymeBank, which in May 2023 raised another US$77.8 million in a pre-series C capital raise, securing two new international investors.