Ashraf El Kady - President of the United Bank
The consumer is the first winner from the competition in the field of electronic payment services
Cairo: 23 November 2020
Ashraf El Kady - Chairman of the Board of Directors - stated that the consumer will be the first winner from the Central Bank’s decision to open the door to banks’ contributions to financial technology companies which will enhances the ability of banks and creates strong competition for the consumers benefit. The decision also contributes to increase the ability of electronic payment companies to expand and increase their resources, thus maximizing their results through the innovation and provision of digital financial services in a strong way to meet the customers’ current and future needs.
El Kady pointed out that the Egyptian society's ability to absorb the digital financial transactions went through two phases; the first was with the beginning of the smart phones’ emergence and the great demand on them and the citizen's ability to deal with them and the cultural, social, political and economic change they brought about, and the second was after the recent global crisis and the large spread of the emerging corona virus.
The digital payments industry enjoys broad growth prospects in light of the great opportunities available for the investors in this promising sector, in addition to that, increasing the consumer financial literacy will enhance the expansion process with tools and technologies, which will attract segments of Egyptian society and achieve financial inclusion.
El Kady expressed that about 90% of digital bank wallets provide their services in cooperation with Fawry digital payments company, due to the availability of important elements, including flexibility, the ability to access and deal with different parties, and the work team great skills.
Banking law establishes regulations for the digital payments market
Concerning the new banking law and the regulatory rules for the digital payments market, Ashraf El Kady says the new banking law set the regulatory and implementation rules for digital payments which will accelerate the digital transformation process as well as extending the scope of supervision and control of the Central Bank on the digital payments market, both as service operators through the required licenses and also as service providers.
El Kady added that the Banking Law defined 6 basic conditions for working in the field of information technology, and they are:
• Obtaining operating license from the Central Bank of Egypt.
• Deposit a bond in favor of the Central Bank to ensure the performance of all contractual obligations.
• Complying with the Central Bank rules governing the electronic retention of documents.
• Obtaining the approval of the Central Bank before appointing executive officials.
• Notifying or obtaining approval from the Central Bank before modifying the structure Shareholder ownership.
• Obtaining the approval of the Central Bank of Egypt before changing the contract for establishing electronic payment companies.
Ashraf El Kady praised the efforts of the Central Bank of Egypt in this context, as the Central Bank launched a system of instantaneous payments to banks. It has also set up a national switch and an electronic clearinghouse for bank retail payments and automating the governmental salaries and pensions. Also, it has developed licensing procedures and payment system oversight, as well as the launch of a business incubator for innovators under the name "Nile Pioneers", in addition to the regulatory laboratory for the innovative applications.