Central Bank of Egypt Allows Banks to Offer Services Through Banking Agents

The central bank's board approved rules governing how banks can use banking agents, the regulator said in a statement on Tuesday, according to Al Bayan. Customers will be able to apply for services at an agent's outlets rather than only at a bank's own branches.

The services include opening accounts, updating customer records and verifying customers' identities. Agents must follow regulatory and supervisory standards set by the central bank.

Banks Stay Responsible

The framework makes clear that banks remain responsible for the services their agents provide, and that this work is subject to the central bank's controls. The regulator said the rules are meant to set out the relationship between banks and their agents and to tighten oversight of banking services offered outside branches.

The central bank presented the change as part of its work on financial inclusion. It said more access points would make banking easier to reach, especially in areas that the traditional branch network does not cover.

Why It Matters

The statement did not say which kinds of businesses can act as agents, how agents will be paid, or when the first agent outlets will open. Even so, the rules matter beyond Egypt's lenders. Many countries have used agent banking to reach people without bank accounts more cheaply than by building branches, and these rules let Egyptian banks do the same.

The framework could also create openings for retailers, payment providers and fintech firms with physical networks to work with banks. Because opening an account requires identity checks, how banks and their agents carry out know-your-customer checks under the central bank's rules will matter for adoption and for compliance.