Egypt’s financial technology boom: why cooperation, not competition, is key

The profound digital revolution is transforming Egypt’s financial sector, driven by initiatives such as Central Bank Vision 2030. This ambitious strategy is transforming the country’s financial sector, paving the way for a more modern, technology-driven economy. A key element of this transformation is the development of Egypt’s fintech ecosystem, which has seen unprecedented expansion in recent years.

However, while the fintech sector is on the right track, maintaining this momentum will require more than just innovation. As COO of BPC, a global leader in payments technology in the Middle East and Africa, it is clear to me and other industry leaders that long-term growth will depend on fostering collaborative relationships between fintech startups, traditional financial institutions and suppliers technology.

Driving digital change in Egypt

Egypt’s digital landscape has already seen significant progress, with the government supporting fintech startups and modernizing the country’s payments infrastructure to make transactions faster, safer and less reliant on cash. This has created fertile ground for fintech entrepreneurs whose innovations are helping to transform the financial services sector.

A large digitally literate population and strong internet penetration over 70 percent further drive the development of fintech. There are already over 170 fintech startups in Egypt, offering new solutions in the field of personal finance, payments and insurance technologies. However, with much untapped potential, the key to maintaining this momentum is building deeper strategic partnerships across the ecosystem.

Moving beyond competition to collaboration

While fintech startups are often seen as disruptors of traditional financial institutions, a more collaborative approach could unlock even greater potential. The narrative between fintechs and traditional banks often oversimplifies opportunities for collaboration that can benefit both parties.

Startups are at the forefront of innovation and customer-centric solutions, while banks bring a deep understanding of regulatory frameworks, risk management and scaling operations. By working together, these strengths can be leveraged to create more robust, efficient and inclusive financial services for the Egyptian market.

What benefits does cooperation bring to the ecosystem?

Traditional financial institutions have experience navigating complex regulatory environments and managing large customer bases. On the other hand, fintechs can offer the flexibility and innovation that banks often lack, helping to improve the customer experience and reduce the time to market for new products.

Fintech companies can expand their reach with the support of traditional institutions, while banks can improve their digital offerings by integrating fintech solutions. This mutual benefit creates a win-win scenario that strengthens the entire financial ecosystem. Take for example Fawry, a financial technology company that has changed the way Egyptians manage everyday transactions by improving the accessibility of services for the unbanked, or Paymob, which is also benefiting from partnerships with traditional Egyptian banks and supporting digital adoption.

The role of global technology suppliers

Technology providers also play a key role in supporting digital transformation. Companies like BPC, with global expertise and modern, future-proof solutions, can help both startups and established financial institutions implement secure, scalable platforms that meet local regulatory requirements.

A standout example is South Africa’s TymeBank, a digital bank built from the ground up to reach over nine million customers in less than five years. TymeBank aims to revolutionize the local banking sector by offering its customers a completely digital banking experience.

Customers can open a bank account in less than five minutes and instantly receive cards issued at a TymeBank kiosk.

Using BPC technology, the bank grew exponentially in South Africa to market leading positions and later expanded to other regions.

Another example is Taly, which has managed to accelerate the implementation of its digital payment solutions, reaching a wider audience and supporting Egypt’s digital transformation efforts. There are many other examples, including MoneyFellows, Thndr, Raseedy, MNT-Halan and others. The message is clear: by leveraging the combined strengths of fintech startups, traditional financial institutions and global technology providers, Egypt is on track to build a more inclusive, resilient and sustainable financial future.

Building a sustainable future for the Egyptian Fintech sector

Strategic partnerships, whether between fintech startups and traditional banks or with technology providers, will be crucial to ensuring the long-term success of digital transformation in Egypt. By moving beyond competition and fostering collaboration, the country can create a more inclusive, efficient and resilient financial ecosystem.

Egypt is well-positioned to continue its leadership in fintech innovation. However, its success will ultimately depend on its ability to promote cooperation across the financial sector. By working together, fintechs, banks and technology providers can build a future that provides financial services for all, driving economic growth and sustainable development.