Egyptian banks launch multi-million dollar fintech funds – fintech

Egyptian banks are reportedly on track to launch a $69.6 million fund to support the country's fintech companies. According to a report, this fund will primarily target the digital banking and financial services sector.

Targeted fintech apps

Fintech apps that can cost-effectively extend banking and financial services to all segments of society are also being targeted. So far, only the National Bank of Egypt, Banque Misr and Banque du Caire have been identified as financial institutions participating in this initiative.

Fintechnews Africa reveals in a Test report that “investments from the fund will be made in both local and international emerging fintech companies.” The report adds that some of the funds will be used to develop “young talent in the field.”

Aside from helping fintech companies grow, this fund aims to help the country close its financial exclusion gap. With 67% of the adult population currently financially excluded, Egypt remains one of the most unbanked countries in the world.

Egypt's Financial Exclusion Gap

By adding the Fintech fund to Egypt's existing funds, it is expected to bring financial services to Egypt's marginalized groups. A narrowing financial exclusion gap could, in turn, lead to economic growth.

Regarding the decision of the three Egyptian banks to establish the fintech fund, the report suggests that this may have been necessitated by the banks' desire to keep up with the latest fintech trends. The report, citing a statement released by the banks, said:

“The participation of banks in this fund arises from their belief in the importance of keeping pace with global developments in the field of financial technology, which represents the future of the banking and finance sector in Egypt and the world.”

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