According to a report, Egyptian banks are on action to start a $69.6 million fund reserved to prop the country’s fintech companies.
It is also added that this awaited fund is predominately focusing on the digital banking and financial services sector.
The major focus is on fintech apps that can spread banking and financial services to all sectors of society in a low-cost method.
Up to this point, only the National Bank of Egypt, Banque Misr, and Banque du Caire are disclosed as the financial institutions that are engaging in this ingenuity.
A report reveals that “investments from the fund will be made in both local and international emerging fintech companies.” The report adds that part of the funds gotten will be shared in nurturing “young talent in this space.”
Getting the fund an anticipated action in aiding the country narrow its financial exclusion space, besides only aiding fintech companies’ progress.
Egypt still retains the position as one of the most unbanked countries in the globe, regardless of 67% of its adult population currently being financially excluded.
Egypt’s Financial Exclusion space
With the move of adding the fintech fund in Egypt’s already existing funds, anticipation is that this will yield financial services to Egypt’s excluded groups. A reducing financial exclusion space could lead to economic development.
Regarding the decision of the three Egyptian banks to build the fintech fund, the report proposes this action was entailed by the banks’ want to remain alongside the newest fintech trends. A statement disclosed by the banks, reports that:
“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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