Analysts and experts in the financial technology sector stressed that the technology infrastructure must be fully prepared to accommodate the increasing growth in the field of financial technology. They called for attention to be paid to the drafting of appropriate financial regulations to deal with all developments and developments, as this is a very important element, which determines the need to prepare for the organization and nutrition of the various aspects of the already existing system.
The experts said during the “Age of Financial Technology” session, which was held in the activities of the Islamic Development Bank’s meetings, that the Corona pandemic doubled financial technology services by 900 percent in some countries such as Egypt, which development quickly. during the past few years.
In her speech, Rasha Negm, Assistant Deputy Governor of the Central Bank of Egypt, said there are regulations for the licensing of digital banks in Egypt that will be issued soon, especially as financial technology has become the main factor in several markets, and all has smartphones that help him connect to financial inclusion through digital transactions.
She explained: “There are more players in the market, especially start-up companies, and when the Central Bank of Egypt adopted the financial technology strategy, it was reflected in the development of the information technology industry. In 2014, there were two financial technologies. Companies , and now the number has increased by 55 times, and we have 14 sectors that have become possible in terms of financial technology. ”
900 percent growth in financial technology in Egypt
Norkhat Kochimov, CEO of the Financial Services Authority of Kazakhstan, said that the legal system has been modified to provide new services in his country, and these systems have been established with the aim of facilitating deeper and richer financial services and markets and possibly to make. Kazakhstan has always been a pioneer in many industries, especially banking, since the nineties of the last century, but it not only wanted to work in the financial industry, but also included other markets such as capital markets and others. with this task the government established a center for financial services.
He pointed out that his country’s government has developed financial technology. It has also attracted many global operators to accommodate their model and help them introduce their own business models, payments and financing systems, each of which holds great value and benefits for global markets.
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Malak Hisham Al Baba, director of the Visa Egypt office, said: “We have seen operations increase by 900 per cent in a few months during the Corona pandemic. Everyone really needs to accelerate the pace to move forward in step with the rapid development in developing markets, because there is a need for transformation radically to digital change.
She added that Visa’s research indicates that “the spread of financial technology is not hampered by the pricing of services, and the merchants themselves have the desire to address marketing and electronic payment channels. With regard to micro-activities, in collaboration with the Central Bank of Egypt, we have provided very low cost prices for these projects. ” Infinitely small, giving it the ability to survive in the market and compete.
Legislative development is urgent
Islam Darwish, founding partner of the Nickelodeon Finch Fund, said major banks in Egypt such as Banque Misr, National Bank of Egypt and Cairo all support the fund. It will also attract many investors to become the largest risk investment fund in Egypt and Africa. He explained that there are many transformations, the first of which is related to legislation representing the future with regard to financial services, as well as a major development within the market, including the development of skilled people.It is important that there is a series Egyptian projects that are expected, and not those that transmit external developments, There must also be innovative solutions that are suitable for the Egyptian market. He pointed out that technology investments in the financial sector during the current quarter exceeded more than $ 150 million in investments in financial technology by emerging companies.
Said Talaat, head of the Click technology technology company in the education sector in Egypt, in turn said that the company works with many banks, financial institutions and payment service providers, and what he is doing is in the field of financial technology, especially in schools, where there is a platform to pay for school expenses through various technological mechanisms.
He explained that the education market in Egypt is large, and 30% of its population is under the umbrella of the various educational stages, so additional solutions were developed for the payment of school expenses, and in 2014 there were few who accepted to continue pay. banks, but partnerships have been entered into with banks to provide solutions Payment through payment services via the “Click” platform.
Integration of digital transformation and payment systems
Ehab Abu Bakr, Vice-Chairman of the Board of Directors of the Egyptian Post for Digital Transformation, confirmed that the post has approximately 32 million customers and 15 million prepaid cards for pensions and others. He also owns about 700 automatic cash machines, and many Egyptians do not know that the post is used for money transfers, and he has 3 work areas, including the banking sector in addition to lending, as well as the traditional postal work as well as the financial side. Regarding the benefit of overpayments by Egyptians abroad, he revealed that Egyptian postal regulations allow him to transfer money across borders. He is currently negotiating with other parties to make it the final stage in the completion of these foreign transactions.
Engineer Hani Moussa, Director of Business Solutions at e-Finance Group, indicated that the group works with the government in the field of digital transformation in various agricultural and oil sectors, as well as land acquisition for owners and farmers, seasonal crop censuses, calculating the quantities of subsidized fertilizers and how they are distributed, in addition to providing payment cards so that the group integrates digital transformation and payment systems.
He pointed out, “About 7 million citizens spent their pensions from the Egyptian Post. This broad segment began to change its culture, and managed to own cards to pay pensions directly through ATMs. It is a great development in the culture of merchants.In Egypt we have a very advanced structure that makes it possible to provide many services, and the group has about 13 partners in the field of electronic collection and payments.