The Central Bank of Egypt (CBE) has approved new rules regulating banks’ use of banking agents to provide certain banking services on their behalf, including customer identification and verification. The move forms part of the CBE’s efforts to promote financial inclusion by bringing all segments of society into the formal financial system and expanding access to banking services, particularly in remote areas and locations where bank branches are unavailable.
In a statement, the CBE said the new rules are expected to facilitate access to banking services, enabling citizens to open bank accounts, update their personal details and submit applications for certain banking services through approved banking agents’ outlets, while ensuring the protection of customers’ rights and the confidentiality of their data.
The rules establish a regulatory and supervisory framework for banking agency activities, setting out the minimum standards and controls that banks must observe when providing services through contracted agents. They also specify the requirements for obtaining CBE approval to conduct such activities and the criteria for approving banking agents.
The CBE said the move builds on its ongoing efforts to promote financial inclusion through various initiatives and regulatory instructions. These efforts have contributed to raising financial inclusion rates to unprecedented levels, reaching 79% in June 2026, representing growth of 229% compared with 2016.
Breaking geographical and traditional barriers
Banking expert Mohamed Abdel Aal said the CBE was laying the foundations for a new era in Egypt’s banking sector through the introduction of the banking agent system.
He noted that the strategic initiative was not merely a routine regulatory measure, but rather a dynamic tool designed to break down the geographical and traditional barriers that have long restricted millions of citizens’ access to financial services, paving the way for a significant advance in the country’s financial inclusion agenda.
Abdel Aal explained that the banking agent model involves authorising qualified and trusted entities, such as post offices, telecommunications companies, electronic payment institutions and government bodies, to provide certain banking services on behalf of banks.
He pointed out that although the Egyptian market had previously witnessed limited practices and small-scale partnerships involving cash withdrawals and deposits through electronic wallets, the new model introduces a comprehensive and fully regulated legislative framework for the first time.
Under this framework, agents will serve as official extensions of banks and key customer acquisition points, authorised to undertake tasks previously restricted to bank branches. These include verifying customers’ identities, updating their information and receiving account and loan applications before forwarding them to the relevant bank for consideration.
A network of mutual benefits
According to Abdel Aal, the new system establishes a network of mutual benefits that could positively affect all parties across the economic ecosystem.
He explained that the system will enable banks to expand their geographical reach and acquire customers at significantly lower operating costs, without requiring substantial capital investment in establishing new physical branches.
Customers, particularly those in rural and border areas, will benefit from saving time, effort and travel expenses while gaining convenient access to banking services closer to their homes.
At the broader economic level, the system will help integrate the informal economy into formal financial channels, increase liquidity within the banking sector and create new employment and growth opportunities for small businesses and institutions operating as agents.
Smart functional integration
Abdel Aal noted that the simplicity of the banking agent model might raise questions about whether it conflicts with the rapid expansion of digital banking services and digital banks. However, he stressed that the system is designed to achieve smart functional integration by serving different customer segments and meeting varying needs.
He explained that while digital banks, the InstaPay application and other electronic services primarily target younger, technologically literate customers, the agent system will cater to citizens who prefer direct human interaction or live in remote areas with limited digital connectivity.
He added that the system would not create adverse competition with existing bank branches. Instead, it would allow traditional branches to focus on complex and advisory services, such as corporate lending and investment, while routine transactions and initial applications could be handled through the agent network.
According to Abdel Aal, optimism about the system’s prospects in Egypt is supported by the country’s potential and successful international experiences in markets with similar economic and geographical characteristics.
Such models have demonstrated their effectiveness in countries including Brazil, where banking services have been expanded through pharmacies and grocery shops; Kenya, through retail and telecommunications networks; and India, which has relied on business correspondents to reach thousands of remote villages.
He added that the prospects for the system’s success and expansion in rural and border areas were particularly strong, given that residents in these areas already have established relationships and regular dealings with local post offices and retail networks.
This makes banking agents a suitable option for bridging geographical gaps and transforming financial inclusion from target figures into a tangible and sustainable reality across the country.
Eligible activities and services
The CBE has specified the activities and services that banking agents may provide on behalf of banks under the rules regulating this activity.
Permitted activities include identifying customers, verifying their identities and updating their information, details and documents in accordance with the due diligence procedures issued by the Money Laundering and Terrorist Financing Combating Unit.
They also include using the digital financial identity system to identify bank customers and verify their identities electronically, as well as update their digital information and documents in accordance with the relevant regulatory rules.
Other authorised activities include receiving and completing customer applications relating to various banking transactions, including opening accounts, updating customer details, issuing bank cards, carrying out transfers and submitting requests for cheque issuance. These applications must subsequently be referred to the relevant bank departments to complete the necessary procedures in accordance with approved forms and controls.
The rules also permit agents to receive and complete customer applications for loans and credit cards, whether or not these involve contracts, cheques or promissory notes. Agents may also deliver all types of bank cards, provided that they are not activated.
The permitted activities further extend to providing financial education and awareness services, as well as marketing and promoting banking products through printed advertising materials approved by the relevant bank.
The rules aim to regulate the role of banking agents and define the scope of services they are authorised to provide on behalf of banks. This is intended to facilitate customers’ access to banking services and expand the customer base benefiting from them, while ensuring compliance with supervisory controls and banking regulations.
Duration of banking agency contracts
The CBE has stipulated that banking agency contracts signed between banks and agents must not exceed three years. They may, however, be renewed for additional periods of the same duration, provided that the CBE is notified at least three months before the contract’s expiry.
This requirement forms part of the broader framework governing banks’ use of agents to provide banking services on their behalf.
The rules are intended to enable citizens to access banking services through the premises of approved agents without having to visit bank branches. These services include customer identification and identity verification, account opening, updating customer details and submitting applications for certain banking services and products, subject to the controls governing customer protection and data confidentiality.
A regulatory and supervisory framework for agency activities
The CBE has established a regulatory and supervisory framework for banking agency activities, setting out the minimum standards and controls that banks must observe when entering into agreements with agents.
The framework also specifies the requirements for obtaining CBE approval to conduct such activities and for accrediting banking agents, with the aim of ensuring the sound delivery of banking services and subjecting these activities to continuous supervision.
The rules require agency contracts to clearly define the respective roles, rights, obligations and responsibilities of banks and agents, as well as specify the banking services and activities that agents are permitted to provide. Agents are prohibited from conducting any activities other than those expressly stipulated in their contracts.
The rules further emphasise that banks and banking agents must comply with the standards and controls governing banking agency activities, applicable Egyptian laws, CBE instructions and the requirements of the Money Laundering and Terrorist Financing Combating Unit, including those relating to customer due diligence and identity verification.
Contracts must also include provisions governing the security of banking agents’ outlets, contractual penalties and compensation procedures in the event of a breach of contractual obligations.
The rules require clear mechanisms for addressing breaches of contractual terms and settling disputes that may arise between customers and banking agents or between agents and banks.
They must also specify the compensation procedures applicable if either party decides to discontinue banking agency activities, thereby ensuring the protection of all parties’ rights and the continuity of services to customers in accordance with approved regulations.
Supervision of banking agent activities
Regarding the supervision of banking agents, the rules require banks to establish internal control procedures and determine the documentation requirements relating to customers.
Agency contracts must expressly grant banks the right to access, supervise and inspect agents’ internal systems, documents, records and premises regularly to verify that their operating procedures comply with CBE instructions and the relevant regulatory requirements.
Banks are also entitled to request the necessary reports from agents and require them to submit such reports periodically or whenever necessary, within the specified timeframes.
These supervisory powers also extend to the CBE, which has the right to access, supervise and inspect banking agents’ internal systems, documents, reports, records and premises as it deems appropriate. This strengthens oversight of banking agency activities and ensures compliance with regulatory and supervisory requirements.
The rules require banks to specify the approved premises from which banking agency services may be provided and stipulate in their contracts that services must be delivered exclusively through these locations.
They also confirm that all data and documents relating to transactions carried out by an agent are the property of the bank that entered into the agency agreement. Agents are prohibited from using or sharing such information with any other party.
The CBE stressed that banking agents must maintain the confidentiality of customers’ data and refrain from disclosing it, both during the term of the agency contract and after its expiry.
Agents must also ensure that documents and records are stored securely until they are transferred to the bank, within a maximum period of 30 working days. This requirement is intended to safeguard banking information and data and prevent their use for purposes other than those specified.
Protecting customer rights
As part of efforts to strengthen customer protection, the rules require banking agents to display signs or notices at their approved premises explaining the procedures for receiving customer complaints. Such complaints must be referred to the relevant bank for handling in accordance with the instructions governing the protection of bank customers’ rights.
The rules also require the fees and commissions payable by customers for banking services to be clearly specified, alongside the fees and commissions payable to agents. Agents are prohibited from charging any amounts exceeding those stipulated in their agency contracts.
Additionally, the rules emphasise the need to provide customers with clear and detailed information about all terms and conditions governing banking services, their limitations and associated charges before they use them. This is intended to ensure that customers are fully aware of all costs and obligations arising from obtaining services through banking agents.
The rules also require the working days and hours during which services are available to be specified. Agents must display a clearly visible sign outside their premises showing the names of the banks with which they have contracted.
Banking agents are further required to display clear notices inside their premises listing all the banking services they are authorised to provide, enabling customers to identify the available services and distinguish them from those agents are not permitted to offer.
Entities eligible to operate as banking agents
The CBE has identified the entities eligible to conduct banking agency activities under the rules governing banks’ use of agents to provide certain banking services on their behalf.
It has also established a set of conditions and requirements for new entities seeking to enter the activity, with the aim of ensuring that they have the financial standing and operational capacity necessary to provide services in accordance with regulatory and supervisory controls.
The rules permit financial institutions subject to the CBE’s supervision and oversight to conduct banking agency activities, provided that no sanctions or penalties have been imposed on them during the two years preceding the effective date of their authorisation to conduct the activity.
Eligible entities also include non-bank financial institutions subject to the supervision and oversight of the Financial Regulatory Authority (FRA). These institutions may obtain CBE approval to conduct banking agency activities, provided that they submit a letter from the FRA confirming that it has no objection to their participation.
In addition, they must demonstrate sound performance and compliance with the standards and rules governing the activity as determined by the FRA, and must not have been subject to any sanctions or penalties during the preceding two years.
Other entities authorised to conduct such activities include ministries, government bodies and other entities subject to their supervision and oversight, following approval from the relevant ministries and government authorities. This will allow banks to benefit from these institutions’ networks to expand the reach of banking services and serve a wider segment of the population.
The rules also allow Egyptian embassies, consulates and diplomatic missions abroad to conduct banking agency activities, subject to obtaining approval from the Ministry of Foreign Affairs, International Cooperation and Egyptians Abroad.
Furthermore, other entities interested in conducting banking agency activities may apply to the CBE for approval, provided that they meet the basic requirements established to ensure their financial soundness and operational capacity to conduct the activity in accordance with approved standards.
The CBE has stipulated that entities seeking to conduct such activities must hold valid commercial registration and tax registration documents, demonstrating that they are legally established and authorised to operate.
In addition, their owners and senior management personnel must undergo the customer due diligence procedures applied by banks, and they must provide any information that the CBE considers necessary regarding these individuals.
The rules also require the CBE to verify that none of an entity’s owners or senior management personnel has been subject to criminal penalties or penalties relating to offences involving dishonesty or breach of trust. This is intended to strengthen integrity and transparency standards and reduce the risk of banking agency activities being exploited for unlawful practices.
