First microfinance loan through the UB digital wallet

07/09/2021

 The first customer of The United Bank to obtain microfinance loan through the UB digital wallet in Zagazig governate

Nevine Kashmiry - Deputy Managing Director for Business Sector, The United Bank
•    Egypt is ranked 36 globally and the s2nd the Middle East country in the index of rules regulating electronic wallets, according to the report issued by the International Association of Mobile Networks GSMA for 2020.
•    A close link between financial stability and sustainable growth and expanding the base of financial inclusion.
•    The Central Bank's efforts to expand the base of financial inclusion and digital transformation.
•    5 types of microfinance in The United Bank.

Cairo: September 7th, 2021

In a precedent that is the first of its kind, according to the direction of the Egyptian state and The Central Bank towards digital transformation, expanding the base of financial inclusion and developing the small and micro projects sector, a client of The United Bank Zagazig branch obtains microfinance loan, disburses the value of the financing and pays his monthly installments through UB digital wallet.

Last August, the client of The United Bank, Zagazig branch, submitted a request to obtain microfinance loan for the purpose of expanding his commercial activity. Immediately, the microfinance credit officer at The United Bank branch helped him to fill in all the data to obtain the necessary financing. A credit inquiry was made for the client and it was ensured that his activity is up and running on a regular basis, as well as determining the type of financing appropriate to the nature of the activity. After that, The United Bank’s management approved, and it was time to disburse the value of the financing.

Immediately, the credit officer at Zagazig branch sensitized the customer to the benefits of the digital services of The United Bank, specifically UB digital wallet, which is commensurate with the nature of its uses. It is characterized by simplicity of use and high capabilities of speed, accuracy, complete safety and a superior ability to complete banking services. As an enlightened client, he decided to get funding through UB digital wallet and began to discover the techniques for working with the UB digital wallet.

UB digital wallet provides more than 15 online cash transactions, such as: mobile phone charging - mobile phone bill payment - landline phone bill payment - payment of insurance premiums due - payment of utility bills such as electricity, water and natural gas - payment of the expenses of a number of universities - payment Fees of a number of schools - payment of transportation company subscriptions - payment of sports club subscriptions - payment of car violations - renewing a car license - transferring money to other wallets - providing financial support and donations to one of the civil organizations - paying the value of purchases via QR code (scanning) booking travel and airline tickets.

Commenting on this event, Nevine Kashmiri, Deputy Managing Director of The United Bank, says that digital wallets are one of the most effective financial mechanisms to achieve financial inclusion, especially among 8 different categories: youth, women, entrepreneurs, owners of small, medium and micro projects, handicapped people and the elderly in Egyptian society because it saves time, effort and cost for customers.

Kashmiry added that there is a close link between financial stability as one of the basics of sustainable growth for society and expanding the base of financial inclusion, especially for marginalized groups. Financial inclusion improves the living conditions of the poor and marginalized classes. It also supports the small, medium and micro projects sector which contributes to eliminating unemployment and improving the citizen's income level, thus achieving comprehensive and sustainable development as well as merging the parallel economy with the official in order to achieve comprehensive development.

Nevine Kashmiry said that Egypt was able to jump in the index of rules regulating electronic wallets to the 36th place among 90 countries around the world and the second place in the Middle East countries according to the report issued by the International Association of Mobile Networks GSMA of 2020.

Kashmiry praised the efforts of The Central Bank of Egypt to expand the base of financial inclusion and shift towards a non-monetary society, including:
•    Opening bank accounts for young people from 16 years old only with the ID card
•    Launching 4 annual national campaigns to expand the base of financial inclusion dedicated to specific groups, especially youth and women.
•    Encouraging the banking sector to launch financial education campaigns and protect the rights of customers.
•    Launching the national network "Meeza" and expanding the spread of cards, especially the prepaid cards.
•    Launching a series of low-return digital initiatives to encourage the small, medium and micro projects sector in various economic sectors from service - agricultural - industrial - commercial activity
•    Encouraging and stimulating competitive industries, including the furniture industry and handicrafts
•    Increasing the number of automated teller machines (ATM’s)
•    POS points spread
•    Encouraging entrepreneurs

As for the types of microfinance provided by The United Bank, Kashmiry indicates that there are 4 types of financing for the small and micro projects sector: financing the existing activity - financing the owners of existing projects - financing individuals according to the rules of proof of income and without - financing "my business" that targets grocery traders and retail in the governorates of Egypt.