Egypt’s Banking Revolution: How Digital Transformation Is Reshaping Finance And Driving Record Profits

Egypt’s banking sector is undergoing a digital revolution, with banks and the Central Bank of Egypt (CBE) working together to modernize services, enhance financial inclusion, and prepare for a fully digital future.

The Egyptian banks are fully relying on electronic services that eliminate the need for customers to visit bank branches. At the forefront of these services are internet and mobile banking, as well as mobile wallets, which have undoubtedly revolutionized the Egyptian banking sector in recent years.

This massive shift toward digitization in the banking sector, supported and guided by the CBE, has significantly boosted banks’ performance in 2024, resulting in unprecedented profits. This is evident from the financial statements recently released by banks, confirming that digitization represents the future of banking and the financial industry as a whole.

The benefits of digital transformation in banks are not limited to achieving remarkable business results. It has also contributed to enhancing financial inclusion indicators in Egypt. Financial inclusion rates jumped from 27.4% in 2016 to 71.5% by the end of June last year, marking a 181% growth rate, according to CBE data. This means the number of citizens (aged 16 and above) with financial accounts increased from 17.1 million to 48.1 million out of a total of 67.3 million citizens in Egypt.

Through financial inclusion, the state aims to increase the economy’s resilience and competitiveness, improve the business environment, and promote entrepreneurship, which leads to achieving financial inclusion and digital transformation. Financial inclusion enables various financial services to be accessible to all segments of society through official channels at appropriate quality and cost, while protecting the rights of beneficiaries, allowing them to manage their finances effectively.

This comes amid the boom in the payments industry over the past two decades, where digital technologies such as wallets, peer-to-peer payments, and contactless payments have become more prevalent. Regulations have also played a vital role in driving innovation and ensuring consumer protection. Projections indicate that Egypt’s fintech and digital payments market will reach approximately $157.86 billion by 2029.

The Central Bank of Egypt: The Engine of Digital Transformation

CBE is the leader of the digital transformation revolution in Egypt. Through the laws and regulations it enacts for the banking industry, the licenses and approvals it grants to operating banks, and the innovative digital products it launches—on par with major global banks—it has positioned itself as the best regulator of the banking industry in the region. This has attracted many African central banks to study Egypt’s successful digital transformation experience.

The CBE has taken accelerated steps in recent years to promote digital transformation in Egypt, particularly in the banking sector. It began by launching financial inclusion initiatives in April 2017, directing banks to expand digital products such as mobile wallets, mobile banking, and internet banking. This was followed by issuing digital regulations that represent a leap in Egypt’s banking industry, including rules for digital banking licenses, digital lending and savings services, and the tokenization of payment cards on mobile applications. The latest development was the activation of Apple Pay in Egypt by Egyptian banks.

This direction by the CBE, which was not an overnight decision but the result of years of hard work, confirms that the time for full reliance on and transition to digital transactions is approaching. This is evidenced by financial inclusion rates and the volume of digital transactions in Egypt, which is expected to exceed EGP 22 trillion by the end of 2024, a more than 200% increase compared to EGP 7 trillion in 2021.

InstaPay’s Leap

The InstaPay app has achieved a significant breakthrough in the Egyptian market, with over 11 million registered customers in a short period. Transactions are expected to exceed EGP 2.7 trillion in 2024, a 215% increase from EGP 855 billion in 2023, and a 4,700% growth compared to 2022.

The number of electronic wallet accounts in Egypt reached over 47 million in 2024, compared to 25 million at the end of 2021, an 88% growth rate. The value of transactions through electronic wallets exceeded EGP 1.7 trillion by the end of 2024, a 535% increase from EGP 268 billion in 2021. Additionally, the number of mobile wallet transactions reached over 2.5 billion in 2024, an 868% increase from 258 million transactions in 2021.

All these indicators confirm that the massive transformation in Egypt’s digital shift did not happen by chance but through a well-planned strategy aimed at achieving full digital transformation within a few years. This is especially true given the Central Bank’s plans to launch several digital projects in the near future, including the electronic Know Your Customer (e-KYC) service in the second half of 2025.

In a parallel step to this transformation and to encourage the expansion of electronic payment tools, the Central Bank announced the completion of the tokenization of payment cards on mobile applications and the activation of Apple Pay as a first phase. This is an important step toward encouraging citizens to rely on mobile phones for digital financial transactions.

The service was launched in cooperation with international payment companies Visa and Mastercard, the national payment system Meeza, and Apple, in coordination with several banks, mobile payment app providers, and fintech companies. This contributes to integrating international and local systems to expand digital payment services in Egypt and enhances customer confidence in using electronic payments.

Banks Achieve a Digital Spike

In 2024, banks successfully achieved a significant leap in digital transformation. For example, reports and data from Banque Misr, the Housing and Development Bank, and the Commercial International Bank (CIB) showed massive shifts in the number of internet and mobile banking transactions and electronic wallets, as well as attracting new customers to these services. This highlights the role of digital services in enhancing banks’ business performance.

Hassan Ghanem, CEO and Managing Director of the Housing and Development Bank, stated that his bank is adopting an ambitious expansion strategy in digital transformation by applying the latest in fintech. The bank is developing and updating its technological infrastructure with the latest digital systems through growing investments to meet rapid and continuous digital transformation.

He revealed a 39% increase in the number of subscribers to internet and mobile banking by the end of 2024 compared to 2023, with a 60% rise in mobile and internet banking transactions by the end of 2024. The number of mobile wallet app users also grew by 75% by the end of 2024 compared to 2023.

The Housing and Development Bank achieved pre-tax profits of EGP 16.855 billion in 2024, compared to EGP 9.444 billion in 2023, a 78.5% increase. Net standalone profits after taxes reached EGP 11 billion, compared to EGP 6 billion in the previous year, an 83.1% growth for the fiscal year ending December 31, 2024.

Ghanem added that these results reflect the bank’s efficiency and successful execution of its strategy over the past five years. The bank has maximized all available opportunities and diversified its activities, enhancing its ability to attract more customers and offer a variety of banking products tailored to their needs and aspirations.

The bank places great emphasis on building strong and effective relationships with its corporate and retail banking customers by providing customized financial solutions that meet their diverse needs in terms of pricing and costs, ensuring added value and a distinctive banking experience.

CIB’s Digital Transformation

For its part, the Commercial International Bank (CIB) revealed that the average monthly value of digital transactions last year exceeded EGP 2.3 billion, leading to a 94% annual growth in total demand for certificates of deposit and term deposits, reaching 75,000 transactions. The total value of transactions reached EGP 28 billion, a 167% annual growth in the 2024 fiscal year.

Additionally, requests to open additional accounts through internet banking reached 51,000, a 64% annual increase, representing 61% of total additional account openings in 2024.

Requests for loans and credit card issuances through digital channels reached 28,000 and 42,000, respectively, contributing to reaching a wide segment of potential customers.As part of its efforts to promote financial inclusion by increasing the utilization of financial services, providing economic growth opportunities, and driving sustainable development, CIB’s Financial Inclusion Department continued in 2024 to meet the needs of the most vulnerable societal groups. This was achieved by facilitating their access to the bank’s financial services and contributing to improving their quality of life, with a focus on various societal segments such as workers, women, youth, and people with disabilities.

The bank made special efforts to serve individuals with disabilities, organizing a dialogue session with the Egyptian Youth Council to directly understand their needs. This contributed to the bank’s better understanding of this segment’s financial goals and designing tailored solutions to meet their needs.

CIB’s digital channels customer base grew by 25% annually by the end of December 2024, with the highest usage rate. The mobile app recorded a 59% annual growth, significantly increasing the total value of transactions to EGP 552 billion.

The rate of credit card settlement transactions reached 99%, and internal transfers reached 98%, leading to a 26% annual cost rationalization to EGP 4.23 billion by the end of December 2024.

CIB stands out with its latest digital platform for efficiently managing and processing customers’ financial and banking needs, recognizing the growing importance of digital technology in reshaping the future of banking services.

The bank recently launched an updated version of its mobile banking app (CIB Mobile Banking), featuring a distinctive design and ease of use. The new app offers a wide range of features to serve different customer segments, such as Prime, Plus, Wealth, and Private, through a more user-friendly interface. It also introduces new services like bill payments and tokenization to enhance customer convenience and transaction security.

SAIB’s Digital Growth

SAIB Bank reported that the number of individual and corporate internet banking users reached 65,200 by the end of 2024, compared to 51,500 in 2023. The number of individual subscribers reached 61,500 by December 2024, compared to 49,000 in 2023.

Corporate subscribers reached 3,700 by the end of last year, compared to 2,500 in 2023. Corporate transfers through internet banking increased to 27% of total transfers by the end of 2024, compared to 13% in 2023.

The number of companies subscribed to automated payroll transfer services reached 154, with a total of 4,300 payroll files in 2024, double the number processed in 2023.

Suez Canal Bank’s Digital Focus

Akef El Maghraby, CEO and Managing Director of Suez Canal Bank, stated that the bank has established a digital transformation department and headquarters. The bank focuses on achieving comprehensive digital transformation by developing and updating its technological infrastructure and improving customer experience.

He announced the launch of the SCB Mobile Banking app for all individual customers by the end of 2024, reflecting the bank’s commitment to enhancing its customers’ digital experience. The app offers a range of innovative banking services that meet diverse customer needs anytime, anywhere, enabling faster transactions and saving time and effort.

This transformation led Suez Canal Bank to win two awards; “Best Bank in Digital Transformation Egypt 2025” and “Fastest Growing Retail Banking Services in Egypt” from International Business Magazine.

Constantly Growth

This notable transformation has prompted Followict, the leading digital platform focusing on banks and digital services, to question how close Egyptian banks are to full digital transformation. Experts noted that banks have made significant progress but have not yet reached the final stages, considering digital transformation an ongoing process that keeps pace with global technological advancements in the banking industry.

Banking expert Sahar Al-Damaty emphasized that Egyptian banks continue to provide simplified and accessible digital banking services to all societal segments, including remote areas and those less served by traditional banking. This is based on the regulations and rules issued by the Central Bank, encouraging the expansion of digital banking products.

She added that banks are constantly developing electronic wallets and mobile apps to facilitate payments and financial transfers for customers while continuing to prepare the digital financial infrastructure.

Al-Damaty noted that banks have begun expanding the use of artificial intelligence (AI) to analyze customer data and provide customized banking services. She expects the launch of the e-KYC system to enable opening bank accounts electronically and via mobile phones without visiting branches, leading to a leap in banking services in the near future.

She also mentioned that the banking sector has started investing heavily in cybersecurity to protect customer data and digital financial transactions, applying the latest technologies to safeguard banking systems from cyberattacks.

Banking expert Mohamed Abdelaal predicted that the services provided by banks to customers will witness a technological leap thanks to AI in the coming years. AI will positively impact Egypt’s banking sector by improving customer experience. AI-powered chatbots and virtual assistants can handle customer inquiries instantly and accurately, saving time and effort for both customers and employees.

Abdelaal added that the era of the digital economy has encouraged the world to adopt smart solutions, including in the banking sector. Digital banks have emerged as a living model of this evolution, leveraging AI capabilities to achieve qualitative leaps in efficiency. Digital banks can analyze customer behavior precisely, enabling them to offer tailored services that meet individual needs instantly.

He pointed out that the introduction of AI technologies into Egypt’s banking sector, especially with the imminent launch of the first digital bank, will provide modern banking services to all customers, not just the younger generation. AI will enhance innovation in banks and facilitate digital payment processes.

Looking ahead, Abdelaal expects partnerships between banks, fintech companies, and payment providers to undergo a new transformation at the technical and commercial levels, supported by innovative ideas from tech companies and the necessary financial and advisory support from banks. This will create a leap in digital banking products and services in the Egyptian market.

On his side, banking expert Mohamed El-Beih stated that the digitization of banking services has become essential for all banks, especially given changing customer behavior. He noted that customers are increasingly turning to digital banking services for their convenience, speed, and security in conducting financial transactions, particularly the younger generation, who prefer completing transactions online and via smartphones.

El-Beih emphasized that every bank seeks to attract as many customers as possible and offer the best digital banking services to meet their needs, aligning with the state’s goal of promoting financial inclusion in Egypt.

Regarding the proximity of banks to full digital transformation, El-Beih y noted that the journey is still long, despite the Egyptian banking sector making significant progress in digital transformation. This is evidenced by the emergence of increasingly advanced AI applications.

He pointed out that banks are turning to AI and data analytics to provide customized banking services to customers, especially given the cost reductions and increased efficiency offered by digital services.

El-Beih added that the field of AI is evolving rapidly, significantly impacting the quality of services provided to customers. He confirmed that AI has become a fundamental element in the banking sector’s shift toward digitization, contributing to service customization and simplifying the customer experience.

He also highlighted AI’s immense ability to self-learn and adapt to changes, enabling banks to develop innovative products and services that meet evolving customer needs, target new customer segments, and analyze their behavior accurately.