e-finance for financial investments has said that it is examining the requirements and conditions for obtaining a digital bank licence.
Mahmoud Hosny, head of the investment and strategic planning sector at e-finance, stated that the company is currently studying the conditions and requirements issued by the Central Bank of Egypt (CBE) for obtaining this licence.
In his statement to Daily News Egypt, Hosny said that the company will make a final decision regarding applying for the license within a week, after it thoroughly looks at the requirements.
Last week, CBE issued the digital banks licensing rules. The rules stipulated that the capital of digital banks that would finance all segments, except for corporation, must be at least EGP 2bn, provided that this amount increases to EGP 4bn in the case of financing large companies.
The CBE rules also stipulated that the largest shareholder be a financial organisation with previous business experience in similar activities, at a rate of at least 30% of the total capital value.
CBE recommended that each applicant submits a detailed feasibility study that includes defining the target segments and the products to be provided, as well as information technology plans, and cybersecurity plans and strategies. It noted that digital banks are subject to the same rules and controls for control and supervision applied to banks operating in Egypt, and the same laws and controls for combating money laundering and financing terrorism. In addition to some other requirements.
For his part, Hosny said that the company will start its operations in the Saudi market in the current quarter by opening an office for the company in the Kingdom.
He pointed out that penetrating the Saudi market came after the partnership with the Saudi Public Investment Fund – the sovereign arm of the Kingdom, and signing the partnership agreement with the Saudi company “Thiqah” (Trust).
Last April, E-finance signed a memorandum of understanding (MoU) with the Saudi company “Thiqa”, which specializes in providing innovative digital transformation solutions and digital services for the public and private sectors in Saudi Arabia.
The partnership comes in the context of implementing the investment strategy of E-finance, which includes expanding in foreign markets through subsidiaries and sister companies and transferring various services to more platforms and networks. This would eventually help maximize returns for shareholders and secure sources of revenue for it in the foreign currency.
This is the first step for E-Finance to penetrate foreign markets with huge growth opportunities. It will also serve as a starting point for the E-finance group’s expansion to a number of other markets, either directly or with the help of the Public Investment Fund. It is also a catalyst for the group to quickly take the necessary measures to open a branch in the city of Riyadh, Kingdom of Saudi Arabia.
