Egyptian banks to use ACH services in partnership
Negotiations have begun between E-Finance, an electronic payment company, and several other Egyptian banks for the availability of Automated Clearing House (ACH) services in their institutions. The ACH are believed to boost bank transactions. The banks involved are Blom Bank Egypt, Crédit Agricole Egypt, Arab Bank, National Société Générale Bank, Arab Banking Corporation and Commercial International Bank.
It seems as if a partnership deal has been agreed on and it’s awaiting approval because according to the administrative director of product management at E-Finance, Ahmed Abu al-Dahab, the company has agreed to provide ACH together with the Egyptian Banks Company for Technological Advancement (EBC). EBC is responsible for putting in place electronic payment services throughout the country. ACH is considered as one of its principal programme.
The central bank on the other hand has started the establishment of a real-time gross settlement system in Egypt in order to provide risk management tools regulating payments in Egypt’s banking sector and guaranteeing the security of financial transactions according to international standards. In anticipation of the implementation of the agreement with E-Finance, EBC has set off with the early stages of the ACH program by providing additional direct credit services. This will boost the already efficient distribution of salaries and pensions to government and private sector workers by making transaction services available to individuals and companies. This first stage will be followed by the creation of the company’s direct debit programme, which will allow customers to be more easily able to pay their monthly bills and premiums.
According to al-Dahab, E-Finance will also be collaborating with Ahli United Bank and Societe Arab International de Banque to provide the same services.