Misr Digital Innovation (MDI), a subsidiary of Banque Misr, has requested the first digital banking license from Egypt’s central bank, according to a press release.
The step aligns with the country’s vision of promoting a cashless society and boosting an ecosystem supporting digital banking services. In July, the Central Bank of Egypt (CBE) issued new regulations that supervise the licensing, registering, monitoring, and supervising of digital banks.
MDI has provided the CBE with all required documents including financial and business plans, and technological and cybersecurity strategies.
The approval is currently pending till the CBE review all submitted documents, access and tests the application and the services provided, to proceed with issuing the digital license.
According to MDI company, there will be no physical existence for the digital bank, but all banking services can be done via online accounts. Cash deposits can be done in different ways through credit cards and mobile phones.
According to the CBE, the required capital for digital banks is two billion EGP in case the bank will offer all banking activities. In addition, financial can be provided in case the capital is up to 4 billion EGP, noting that the largest shareholders must be financial institutions with experience in similar activities. The country’s primary mission is to create more digital products and services that help financial inclusion for society and business segments including the SMEs.
If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.