For decades, Egyptian banks have been a cornerstone of the national economy and a key partner in development. They finance projects of all sizes, promote financial inclusion and digital transformation, and provide advanced services that boost productivity and reduce unemployment. Despite these efforts, they still face major challenges, including keeping up with digital technology and global economic pressures.

In this context, the Canada Egypt Business Council and the Egyptian Business Council for International Cooperation held a forum discussing “The Role of Banks in Boosting Financial Inclusion and Driving Economic Development in Egypt.”

In the opening remarks, Mr. Motaz Raslan stated that banks are the backbone of financial activity and the cornerstone of economic stability. He pointed out that the rate of financial inclusion for individuals rose to 76.3% last June, compared to 12% in 2016, driven by the use of mobile wallets, prepaid cards, and innovative digital financial services.

Mr. Raslan stressed that digital transformation is no longer an option but rather an urgent necessity. He emphasized that banks have become pioneers in change, keeping pace with the requirements of the times, and highlighted the importance of facing challenges such as technological acceleration, artificial intelligence, and cybersecurity with an innovative spirit and full preparation for the future.

He then gave the floor to Mr. Mohamed El Atreby, Chairman of Al Ahly National Bank, who stressed that the banking system has already begun its journey in digital transformation and digital financial services. He noted that there are two main approaches in this field:

1. Creating a separate company from the banking entity to provide digital services.
2. Establishing a bank-owned company to provide the same services.

Both approaches have proven successful in the market.

El Atreby revealed that the total contributions of banks to the Banking System Support and Development Fund amounted to approximately 11 billion pounds, aimed at promoting digital transformation, raising the efficiency of human resources, and developing infrastructure in line with global changes. He pointed out that the fund is part of a comprehensive vision led by the Central Bank of Egypt to modernize the banking system and achieve integration between banks in the fields of financial technology, sustainability, and innovation.

He highlighted the improvement of various economic indicators for 2024 and 2025, with the economic growth rate reaching 4.4%, foreign exchange reserves rising to $49.5 billion, and net foreign assets reaching $17.9 billion. He added that tax revenues recorded a growth of 36%, reaching 2.2 trillion pounds, driven by digital transformation, electronic collection, and amicable settlement of tax disputes.

El Atreby confirmed that the financial inclusion rate rose from about 12% previously to more than 76.6% currently, reflecting the success of national efforts to integrate new segments within the banking system.

The floor then went to Mr. Waleed Hassouna, CEO of Valu, who explained that banks are not competitors to his company but rather support the financial system, as they finance installment operations. He noted that the “Valu” model works to finance individuals and issue bonds in the debt markets for banks to purchase later. He emphasized that the coming period will be crucial for digital banking services, with the company relying on technology to predict income and reach customers via the Internet and social media, stressing that the Egyptian market is open for innovation and opportunities for experimentation.

Mr. Hisham Ezz El Arab, Chairman of CIB, then addressed the audience, stating that 75% of bank risks are borne by the policies of the central bank, while 25% are due to state policies. He emphasized that financial stability and economic growth depend on the effective management of monetary policies. He pointed out that digital transformation in banks provides new services to customers, especially those with limited income. He praised the experience of digital banking licenses and the adoption of data analysis and artificial intelligence to improve services while addressing the “digital gaps” between the Central Bank and the Capital Market Authority to ensure stability.

Finally, the floor was opened for questions from the attendees, and each question was answered by the speakers.