The Central Bank of Egypt hosted two delegations from the Central Bank of Ghana, within the framework of enhancing cooperation between African central banks and exchanging experiences in the fields of digital transformation, artificial intelligence, data governance, and cybersecurity, in a step that reflects the growing Egyptian role in supporting the development of the technological infrastructure of the banking sector on the continent.
The Central Bank said, in a statement, that the first delegation visited Egypt for several days to learn about the Egyptian experience in the fields of digital transformation, artificial intelligence applications, advanced analytics, and the development of financial services, while the second delegation’s two-day visit focused on benefiting from Egyptian expertise in the field of cybersecurity and protecting financial systems.
The visit included a review of the Central Bank of Egypt’s strategy for digital transformation, the country’s experience in developing the digital payments system, and the efforts made to transform into a society less reliant on cash, through developing the national payments infrastructure, strengthening regulatory and legislative frameworks, and launching advanced digital financial services.
The discussions also covered the most prominent initiatives led by the Central Bank, most notably the Instant Payment Network (IPN), the “InstaPay” application, and the coding techniques used to support secure digital payments, in addition to the digital financial identity system that allows customers to be identified and verify their identities electronically.
The visit touched on the mechanisms for regulating digital financial services, and the authorization frameworks for financial technology applications and modern technical solutions before they are introduced to the market, ensuring a balance between supporting innovation and maintaining the stability of the financial system.
The discussions also focused on methodologies for assessing risks and measuring levels of cyber resilience, through the “Comprehensive Regulatory Framework for Cybersecurity” issued by the Central Bank of Egypt, the second version of which is being developed to keep pace with rapid developments in cyber threats and enhance oversight and evaluation tools to protect banks and financial institutions.
Suleiman: The launch of digital banks reflects the sector’s readiness to adopt modern technology
Ayman Soliman, a banking expert, said that the Egyptian banking sector possesses the capabilities that qualify it to rely on artificial intelligence and digital transformation applications, noting that the banks’ ability to obtain licenses to establish digital banks reflects the sector’s technical and technological readiness.
He added that banks operating in the Egyptian market possess the human competencies and technologies necessary to develop their services and provide innovative solutions that suit the growing needs of customers and keep pace with global developments in the banking industry.
He explained that the success of the Central Bank in launching the real-time payments system efficiently contributed to attracting new segments of users and raising financial inclusion rates, stressing that the spread of digital applications within most banks reflects the sector’s possession of the technological infrastructure capable of carrying out financial operations safely.
Soliman attributed the delay in operating digital banks in Egypt to the stringency of regulatory requirements set by the Central Bank, which require time to implement, and not due to technical or technical challenges.
He explained that the rules for establishing digital banks require that the minimum issued and paid-up capital be no less than two billion pounds to practice all banking activities except for financing large companies, while the minimum rises to four billion pounds if this type of financing is practiced.
He stressed the importance of testing cybersecurity plans before starting the actual operation of digital banks, to ensure the protection of customer data and the security of banking operations, noting that the completion of the digital identity system represents one of the basic elements necessary for the operation of these banks.
Abu Al-Khair: Digital transformation requires moving from confronting risks to anticipating them
For his part, Ahmed Abu Al-Khair, a banking expert, said that achieving a balance between the speed of digital transformation and enhancing cybersecurity requires the banking sector to move from a model that relies on dealing with risks after they occur to a proactive approach based on anticipating threats and preparing for them.
He added that this requires continued investment in risk detection and incident response systems, conducting periodic systems penetration tests, updating the technological infrastructure, and encrypting sensitive data, in addition to preparing effective plans for business continuity and disaster recovery.
He stressed that the human element remains one of the most important components of the cybersecurity system, especially since a large percentage of digital risks are related to human errors or fraud attempts targeting employees and customers.
Abu Al-Khair pointed out that the success of digital transformation within the banking sector requires institutional coordination between technology, cybersecurity, risk, compliance, and executive departments.
He explained that the launch of any new digital financial product should not only be related to speed to market or cost reduction, but must also take into account operational and cyber risks and the protection of customer data and privacy.
