Introduction on Financial Inclusion

Introduction on Financial Inclusion

The idea for Financial Inclusion was first presented in 2010 with a meeting of 55 nations across the world. The Central Bank of Egypt (CBE) joined the Alliance for Financial Inclusion on July of 2013; since then, the CBE has undertaken the mission of spreading the culture of Financial Inclusion in Egypt. Financial inclusion represents one of the key components in achieving sustainable growth, economic stability and prosperity. The spreading of the culture financial inclusion will require the proactive participation of the Egyptian Banks, as such the CBE has requested on March of 2020 the initiation of an independent Financial Inclusion department as well the development of midterm strategy (3-5 years) to achieve financial inclusion.

According to the Findex report of 2017, 33% of the Egyptian population have a bank account or an electronic wallet, a gap of approximately 12% persists between the two genders in terms of the number of account holders, lastly, only about 8% of the population have taken out loans from financial institutions.

What is meant by Financial Inclusion?

Financial Inclusion reflects the state of matching all individuals or institutions to the financial products they need or want; such as current account, savings account, transfer and payments services, insurance, lending and credit facilities among others taking into account the pricing and accessibility as well as consumer protection rights.

The aforementioned products must then be offered by official financial intuitions such as banks, post office and micro-credit intuitions among others.