Egyptian Banks Set to Launch Multi-Million Dollar Fintech Fund. Egyptian banks are planning to create a $69.6 million fund to help the country’s fintech businesses, according to reports. In fact, this fund is likely to focus on the digital banking and financial services sector, according to a study.
Fintech Apps Targeted
Fintech apps that have the potential to extend financial services to all segments of society efficiently will also be within the scope of attention. At present, these institutions are the only financial institutions participating in this initiative: the National Bank of Egypt. As well as Banque Misr, and the Banque du Caire.
According to a report from Fintechnews Africa, “investments from the fund would be made in both local and international growing fintech firms”. Part of the cash will also be utilised to develop “young talent in this space”, according to the article.
Significantly, this fund is expectable to assist the country to lower its financial exclusion gap. In addition to helping fintech businesses develop. Egypt is one of the world’s most unbanked countries. With 67% of its adult population without having access to financial services.
Egypt’s Financial Exclusion Gap
The addition of the fintech fund to Egypt’s existing funds is expectable to offer financial services to Egypt’s marginalised populations. Financial inclusion is narrowing, which might contribute to economic development.
The decision by the three Egyptian banks to establish the fintech fund, prompted by their need to stay up with the newest technology developments. The storey quotes a bank statement, which reads:
“Banks’ involvement in this fund reflects their conviction in the significance of staying current with global advancements in the field of financial technology. Which is the future of the banking and financial industries in Egypt and across the world.”