Farag Abd El Hamid: Vice President of The United Bank
06/03/2022
Farag Abd El Hamid: Vice President of The United Bank
Financial technology is the main engine of The Egyptian state and The Central Bank plans towards digital transformation
- The strategy of the Egyptian state and The Central Bank of Egypt is to transform into a digital society by 2025.
- 7 indicators of the growth of the digital transactions market.
- Benefits of FinTech.
- The United Bank's efforts to support investors and promote digital technology as a mechanism for financial inclusion.
- Cooperation between the government and the private sector to support the digital transformation system in the new republic.
Cairo: March 6th, 2022
The United Bank participated today in the first Al-Ahram Financial Technology Conference under the title "A new vision for the digital economy and cashless society. Under the patronage of the Prime Minister and Governor of The Central Bank of Egypt, in the presence of Dr. Mohamed Me’ait - Minister of Finance and Eng. Abd El Sadek El Shorbagi - President of The National Media Authority and Abd El Mohsen Salama - Chairman of Al-Ahram Foundation, with the participation of a group of bank board chairmen and a large number of bankers and media professionals.
In the third session, many discussions took place on "electronic payments, service development and innovation support," with the participation of Farag Abd El Hamid - Vice President of The United Bank, Ihab Nasr - Deputy Governor of the Central Bank of Egypt, Omar El Moataz - Director of Products, Solutions and New Payment Platforms, MasterCard Egypt and Dr. Ayman Ismail - Founding Director of The American University Business Incubator and Eng. Ahmed El Shahat - Head of the Information System Sector at MTC.
The strategy of The Egyptian state and The Central Bank of Egypt is to transform into a digital society by 2025
Farag Abd El Hamid explained that the strategy of The Egyptian state and The Central Bank is to transform into a digital society by 2025. This will contribute economically and socially on Egypt as it will allow innovators, develop infrastructure, increase the volume of investments, open new markets, develop postal services, and achieve a system of financial inclusion.
Financial technology has become the main engine for the growth of the national economy and the dissemination of a culture of financial inclusion in order to support the economies of the Egyptian state because of its vital role in integrating the informal economy segment into the arteries of the national economy, which reflects the recent and important initiatives of the Central Bank.
Abd El Hamid explained that the political leadership, The Central Bank of Egypt and The Ministry of Communications are taking serious and broad steps towards rehabilitating Egypt in technology to be a center for digital technology and artificial intelligence applications in the Middle East.
7 indicators of the growth of the digital transactions market
Farag Abd El Hamid identified 7 local and global indicators of growth in the digital banking transactions market, on top of which is the Corona virus crisis and the development of customer culture towards reducing the use of cash. The number of bank accounts has also grown, especially with the launch of financial inclusion campaigns by The Central Bank of Egypt as well as the high percentage of young people and their interest in using payment methods and digital services, in addition to allowing the opening of accounts for young people starting from 16 years and the spread of mobile significantly as well as a growth in the volume of electronic commerce in Egypt.
Financial technology is a competitive arena for the Egyptian banks
Abd El Hamid explained that the percentage of bank account holders in banks does not exceed 33% of adults in 2019. This percentage simply means that the market has not reached the saturation stage yet and that customers are looking forward to further technological development.
He stressed that The Central Bank's decision to open the door for contributions to banks in financial technology companies will enhance the ability of banks and create strong competition for the benefit of the consumer, and the decision will also contribute to increasing the ability of electronic payment companies to expand and increase their resources, which maximizes their results through innovation and strong digital financial services to meet the needs of customers current and future aspirations. Herein lays the importance of the digital payments industry in increasing its contributions to the gross national product.
As well as the Banking Law, which includes regulatory and enforcement rules for digital payments which will accelerate the process of digital transformation, especially that he set 6 basic conditions for working in the field of information technology: Obtaining an operating license from The Central Bank of Egypt,
Depositing a bond in favor of the Central Bank to ensure the performance of all contractual obligations, Complying with the rules governing the electronic retention of documents determined by the Central, Obtaining the approval of The Central Bank before appointing executive officials, Notifying or obtaining the approval from The Central Bank before modifying the shareholder’s ownership structure, also, obtaining the approval of The Central Bank of Egypt before changing the establishment contract of electronic payment companies.
4 axes for the efforts of the state and the Central Bank of Egypt to expand the base of financial inclusion and digital transformation
Regarding the efforts of the state and The Central Bank of Egypt to expand the base of financial inclusion and the transformation of a non-monetary society, Farag Abd El Hamid refers to 4 main axes: the establishment of the National Payments Council - the establishment of a database of financial inclusion as well as the launch of the national electronic financial network. Also, The Central Bank of Egypt launched the first card on the national system, "Meeza".
Believing in the importance of this industry and its results on the national economy and social level in terms of: the growth of the internal trade movement - the increase in the foreign trade movement - the export trade banking finance - as well as the increase in the market demand for retail banking products - in addition to the increase in the productivity of workers and raising the operational efficiency through the spread of digital knowledge, which facilitates customer service in accordance with international quality standards.
The United Bank’s efforts to support investors and inculcate digital technology as a mechanism for financial inclusion
Farag Abd El Hamid indicated that The United Bank has bet on digitization and artificial intelligence since 2016 as part of its strategy that aims to grow in infrastructure and digital services as well as implementing an integrated system of electronic security, protecting customer assets and data privacy as a primary priority. As well as participating strongly in cybersecurity applications and the foundations of addressing fraud especially in light of the increase in digital transactions. As well as expanding the base of financial inclusion, whether through comprehensive awareness campaigns for customers or through applications to secure and protect their data and investments. As well as the spread of high-quality banking solutions and services, which serve Egyptian citizens of different geographical distribution, in addition to the expansion of new branches, whether traditional or double, with the development and modernization of the current network of branches and Nile Pioneers Centers to serve current and future customers, especially in the places of industrial and urban clusters, the Golden Triangle and the development axis.
Abd El Hamid stressed the keenness of The United Bank to enhance its investments in the field of technological infrastructure on a permanent basis. It is one of the first banks to launch a package of smart applications under the name "Your Bank On Line": mobile banking, internet banking, and also the digital wallet. It also provides solutions for companies, including cash management, commercial, logistic services, electronic and government payments such as customs and taxes which contribute in reducing time and increasing the profits of these institutions.
In addition, it offers a package of contactless credit and prepaid cards, whether through the national network "Meeza" or through global networks. Also, it provides a series of other digital services through the internet banking, smart wallet and ATMs using the security code technology, which secures all banking transactions.
The cooperation between the government and the private sector to support the digital transformation system in the new republic
The United Bank is one of the leading banks in providing electronic payment services for government taxes and customs dues. This is a part of the strategies for transforming into a cashless society and increasing the base of financial inclusion as well as saving the effort and time of the citizen and to facilitate it.
The United Bank continues to develop, as it launched the instant payment service for tax obligations (tax invoices) for customers and non-customers in cooperation with the e-finance operating technology company, and through the electronic portal of the Egyptian Tax Authority in implementation of the comprehensive system for tax operations 2021.
