The Central Bank of Egypt (CBE) has announced preparations for the second phase of its remittance digitization project targeting Egyptian expatriates, with 12 banks operating in the local market set to participate. The initiative is a key component of the CBE’s broader strategy to drive digital transformation, promote financial inclusion, and expand access to financial services—particularly for women.
According to a recent report from the CBE, nearly 1.5 million women in Egypt currently benefit from remittance inflows, accounting for around 85% of total recipients. The second phase of the project aims to build on this momentum by offering targeted financial products to remittance beneficiaries, while also encouraging the use of prepaid cards and digital wallets through a system of new incentives.
As part of the initiative, the CBE has signed agreements with several banks and exchange companies operating in Gulf countries, where a large portion of Egyptian expatriates are based. These agreements aim to facilitate more efficient and secure remittance flows.
Toward Digital Lending and Credit Innovation
In parallel with the remittance program, the CBE is exploring the integration of behavioral credit scoring as part of its effort to promote digital lending. The bank revealed that it is currently assessing data provided by the National Academy for Anti-Corruption to evaluate its potential in supporting this credit scoring model. The behavioral scoring system is expected to improve access to credit for individuals and small enterprises, especially those with limited credit histories.
This move comes amid a broader push by the CBE to enable digital lenders to operate through secure platforms, leveraging advanced technologies such as artificial intelligence to streamline the credit evaluation process. These developments aim to extend financial services to underserved segments, including micro- and small-sized enterprises.
In December 2023, the CBE signed a cooperation protocol with the Administrative Control Authority, Digital Egypt Investment Company (affiliated with the Ministry of Communications and Information Technology), and the Egyptian Credit Bureau (I-Score). This partnership is designed to establish a robust framework for data exchange and analytics, enabling the adoption of innovative tools to assess creditworthiness more accurately and inclusively.
