Global FinTech Guide
Country Name
Online banking services
FinTechs belonging to this area offer traditional banking services in a modern way, usually through online services or mobile applications as well as ancillary services – e.g. enabling customers to manage their giro- or custody-accounts online and in real time or offering e-wallet services. Keywords in this context are also API-Banking or Banking as a Service (BaaS)/ Bank as a Platform (BaaP).


API stands for application programming interface and is offered to access data banks and to extract and insert information. API-Banking consequently means the access to data banks of banks to offer new and innovative banking applications.

Through these services FinTechs offer services with new functions, e.g. enabling customers to manage their accounts online and in real time.

BaaS – Bank as a Service/BaaP – Bank as a Platform:
The API-based Bank as a Service platform has a full banking licence, but merely serves as the back end for standalone independent FinTechs, which “use” the licence and the back end of the bank to offer new financial services, launch additional financial products or expand into additional markets.


Attitude of the country towards online-banking services

Currently, online banking services are being provided by almost every bank in Egypt. They are socially acclaimed and highly used as they enable the bank customers to perform most transactions at the click of a button.

Legal affairs

Obligations and requirements to provide online-banking services described above

 The Egyptian Banking Law No. 194/2020 has introduced the concept of digital banks. Digital banks are banks which provide banking services through digital channels or platforms using modern technologies (article 1).

Digital banks are subject to the general rules governing banks in Egypt under the New Banking Law, including obtaining a license from the CBE before exercising any activity. In order to obtain such a license, the digital bank must be incorporated as an Egyptian joint stock company or branch of a foreign bank, so the digital bank must have physical headquarters. In addition, the CBE’s board of directors can exempt digital banks from the minimum capital requirement, which is EGP 5 billion (article 64).

Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area


Economic conditions

Market size for online-banking services and biggest companies in this business area

As previously stated, online banking services are provided by almost every bank in Egypt regardless of its size and market share. Regarding the profitability of online banking services, Banking analysts stated that it's impossible to generalise about whether Internet banking has been profitable since there are so many ways to measure profitability. A few banks' Internet-based services have been profitable, such as online bill payment. But "for the majority of institutions, the Internet is not profitable in and of itself". There is no clear indication on the amount of market shares each bank owns in this business area.

Additional comments regarding the economic situation for online-banking services or what FinTech’s must be aware of in this business area




© 2022, Marghany Advocates. All rights reserved by Marghany Advocates as author and the owner of the copyright in this chapter. Marghany Advocates has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this guide.

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.


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