Egyptian banks are reportedly on course to launch a $69.6 million fund which is earmarked to support the country’s fintech companies. According to a report, this fund is expected primarily to target the digital banking and financial services sector.
Fintech Apps Targeted
Fintech apps that can extend banking and financial services to all segments of society in a cost-effective way will also be targeted. So far, only the National Bank of Egypt, Banque Misr, and Banque du Caire have been identified as the financial institutions that are participating in this initiative.
Fintechnews Africa reveals in a report that “investments from the fund will be made in both local and international emerging fintech companies.” The report adds that part of the funds will be used to nurture “young talent in this space.”
Aside from helping fintech companies grow, having this fund is expected to help the country narrow its financial exclusion gap. With 67% of its adult population currently financially excluded, Egypt remains one of the most unbanked countries in the world.
Egypt’s Financial Exclusion Gap
By adding the fintech fund to Egypt’s already existing funds, expectations are that this will bring financial services to Egypt’s excluded groups. A narrowing financial exclusion gap could in turn lead to economic growth.
Concerning the decision by the three Egyptian banks to create the fintech fund, the report suggests this may have been necessitated by the banks’ desire to keep abreast with the latest fintech trends. Quoting a statement released by the banks, the report states:
“The participation of banks in this fund stems from their belief in the importance of keeping pace with global developments in the field of financial technology, which is the future of the banking and financial industry in Egypt and the world.”
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