Egyptian state-run banks launch $63.5m fintech fund

Three Egyptian state-controlled banks will launch from next month a $63.5 million (EGP 1 billion) fintech fund to support start-ups in the fintech space and international outfits that want to establish in the Egyptian market, concerned banks have said in a statement.

National Bank of Egypt, Banque Misr, and Banque du Caire are behind the launch of the fund.

Aside from providing support, the fund will also work on enabling more applications of fintech, which would facilitate the process of providing and delivering financial services.

Egypt adopted last year the Banking Act and draft legislation in view of cementing Egypt’s position as one of the MENA region’s fintech centers, while also driving financial inclusion in the wider population, a key driver of investor interest in the fintech industry, Arab Finance reports.

The Act, the media also notes, ended some of the regulatory uncertainties facing the sector, establishing a mechanism for the licensing of e-payments and fintech firms, and for the first time provided a framework for the licensing of digital banks.

The Financial Regulatory Authority (FRA), author of the act, is expected to establish new licensing and supervisory powers for nano-finance, crowdfunding, robo-advisory and insurtech firms, and is still being discussed by lawmakers.