CBE's Governor Hassan Abdalla Highlights Successes, Challenges In Egypt's Path To Financial Inclusion

(MENAFN- Daily News Egypt) The UNCDF-based“Better Than Cash Alliance” Interviews the Governor of the Central bank of Egypt, Hassan Abdalla

Under the leadership of Hassan Abdalla, the Central Bank of Egypt (CBE) has implemented ambitious reforms to integrate marginalized groups into the formal economy.

The CBE's financial inclusion strategy for 2022-2025 focuses on underserved groups, including women, youth, and Persons with Disabilities (PWDs). This strategy aligns with global best practices while addressing local needs.

In this exclusive interview, Governor Abdalla shares insights into Egypt's journey towards financial inclusion, highlighting both successes and challenges.

He also discusses the policies and regulatory frameworks essential for fostering an enabling environment for financial inclusion, with a particular emphasis on PWDs.

Egypt has made significant strides in financial inclusion, especially for Persons with Disabilities (PWDs). Can you highlight some key successes and challenges encountered on this journey?

The financial industry has witnessed significant transformation, with financial inclusion, consumer protection, and inclusive green finance becoming top priorities for financial regulators, especially in developing economies. Egypt stands out as a pioneer in advancing financial inclusion, aiming to leapfrog into the future by adopting international best practices and exploring new areas. Believing in the tremendous impact of financially including all citizens on the country's financial stability, the CBE issued a financial inclusion strategy for 2022-2025. This strategy focuses on key marginalized segments of the population, including women, youth, and PWDs, emphasizing regulatory and guidance perspectives. The journey has seen successes in integrating these groups into the formal financial sector, but challenges remain in ensuring widespread access and acceptance.

What policies and regulatory measures has the Central Bank of Egypt implemented to enhance the financial inclusion of PWDs?

Supporting the financial inclusion of PWDs requires a holistic approach, starting with creating an enabling environment through policies and regulations to incentivize and empower the banking sector. In 2021, the first set of rules was introduced to enable PWDs to access financial products and services formally. Key measures included:

• Mandating that all newly established branches and at least 10% of existing branches, as well as ATMs, be designed and equipped to serve PWDs.
• Providing application forms in Braille.
• Ensuring customer service representatives are fluent in sign language.
• Adopting tiered KYC (Know Your Customer) regulations to allow banking accounts to be opened with only a National ID.
• Implementing simplifications and facilitation measures to drive inclusion.

Additionally, the CBE launched an annual dedicated financial inclusion event for PWDs in December. During this event, banks are permitted to conduct commercial activities outside their branches, aiming to raise financial awareness and promote inclusion by allowing customers to open accounts without fees or minimum balances.

How has the banking sector adapted to and implemented the new accessibility requirements for PWDs?

The sector has complied with the necessary accessibility requirements in their branches and ATMs, surpassing the percentage defined by the CBE. They have adopted a single window system to ensure swift and convenient service to clients and have taken steps to enhance services based on clients' disabilities.

Around 9,300 employees have been trained in sign language to better serve and assist clients with hearing or speech impairments. For visually impaired clients, account opening and other product application forms are available in Braille. Additionally, signature stamps and fingerprints are accepted as alternatives to written signatures across all banking procedures.

Banks have also enabled screen reading software for their electronic channels and issued debit and credit cards upon request, ensuring these cards are appropriate and easy to use. Special designs with prominent letters and/or numbers facilitate card identification for customers.

Audio and sign language recordings are required for information provided on banks' websites and social media sites. Additionally, branch employees are available to conduct home visits to PWDs to provide banking services.

While more time is needed to ensure these services are accessed on a broader scale, these measures will allow for further developments and enhancements by the banks to empower PWDs financially and serve them with their convenience and needs in mind.

MENAFN31082024000153011029ID1108622393