Monday 18/November/2024 – 11:13 PM
Dr. Rasha Negm, Deputy Assistant Governor of the Central Bank of Egypt, stressed the importance of facilitating access to financial services Egyptian financial sector.
The Deputy Assistant Governor of the Central Bank pointed out that the significant expansion in alternative financing has contributed to strengthening the role of financial technology companies at the expense of traditional banks.
Najm explained during her participation in the Electronic Payments and Financial Inclusion Conference sponsored by the Central Bank of Egypt on the sidelines of the Cairo ICT24 Conference and Exhibition, in a session entitled: Enhancing Access to Finance in the Age of Digital Transformation, that the volume of alternative financing activity reached $320 billion last year, recording… A growth of more than 27%, while the growth of traditional financing carried out by banks reached only 7%.
She also stressed that loans and financing are now available through electronic platforms, and not only through traditional banks, which creates a new pattern of financing, represented by people lending to people.
Size of the alternative financing market
She stated that expectations see that the size of the alternative financing market may reach $6 trillion by 2030.
She explained that with the expansion of this type of financing and the emergence of crowdfunding, it has become necessary to have legislation regulating this field, which the regulatory authorities are working to implement.
Najm revealed that work is currently underway to prepare a new law to regulate these activities in a way that contributes to enhancing financial inclusion and provides access to marginalized segments far from the traditional financial system.
