The Central Bank of Egypt (CBE) has granted preliminary approval to Misr Digital Innovation (MDI) to establish the country’s first digital bank, Onebank. This groundbreaking development marks a significant milestone in Egypt’s digital financial landscape.
Onebank is scheduled to launch in the fourth quarter of 2024, following the completion of its second licensing phase. The digital bank aims to promote financial inclusion by offering a wide range of banking services and products through its online platform. Unlike traditional banks that require in-person visits to branches, Onebank will provide a fully digital experience, allowing customers to create accounts and perform banking transactions conveniently from anywhere.
The CBE’s regulatory framework for digital banks, introduced in 2023, paved the way for the establishment of these innovative financial institutions in Egypt. MDI’s Onebank was the first to submit an application for a digital banking licence, but it won’t be alone for long. Several other banks and financial institutions, including the National Bank of Egypt, Emirates NBD, Orascom Financial Holding, and Ostoul Securities Brokerage, have expressed interest in launching their own digital banks.
Egypt’s decision to embrace digital banking aligns with global trends in the financial technology market. The World Economic Forum has recognized Africa as the world leader in digital banking, with the region boasting the highest number of services, account holders, and transactions. The rise of mobile and digital banking has been instrumental in providing financial access to millions of Africans, particularly in areas where traditional banking networks are limited.
Onebank will join a growing number of digital banks in Africa, including South African TymeBank and Nigerian Kuda. TymeBank recently secured $77.8 million in a pre-series C capital raise, expanding its operations to new markets. Kuda has also made significant strides by obtaining payment licences in Canada and Tanzania, enabling it to offer remittance and multi-currency wallet services.
Egypt’s Onebank is poised to revolutionise the country’s financial landscape by providing accessible, convenient, and secure banking solutions to a broader spectrum of the population. As the digital banking revolution continues to gain momentum in Africa, Egypt’s pioneering efforts will undoubtedly contribute to the region’s financial development and inclusion.
