Egyptian payment provider, Fawry, is considering transforming its online payment portal, myFawry, into a digital bank by the end of 2023. This will be part of its effort to offer financial services such as payments, consumer lending, savings, and investments.
The company’s head of investor relations, Hassan Abdelgelil, clarified that the decision to launch a digital bank is still under consideration by management and the board. The Central Bank of Egypt (CBE) recently introduced regulations for licensing and supervising digital banks, prompting interest from companies like Fawry.
The Egyptian fintech industry is anticipated to grow significantly, with the market volume predicted to reach $10 billion by 2027. The number of fintech companies in Egypt has grown fivefold from 32 in 2017 to 177 in 2022. Fawry, the largest e-payment platform in Egypt, aims to leverage a digital bank to expand its services and revenue streams, targeting various segments of the market.
Fawry’s subsidiary, Fawry Microfinance, gained preliminary approval to include SME financing in its portfolio. To tap into the remittances market, Fawry partnered with UAE-based app, Botim, to enable Egyptian workers in the UAE to pay bills and send remittances. Nigerian fintech company, Flutterwave, also plans to enter the Egyptian remittances market.
In 2023, Fawry, reported total revenue of EGP 1.4 billion ($45.3 million), a 42.4% increase from the previous year. Adjusted net profit surged 290.4% YoY to EGP 327.9 million ($10.6 million) with a net profit margin of 22.7%. The company processed 67.6 million transactions on its mobile wallet, totaling EGP 80.5 million ($2.6 million), marking a 73.9% and 107.7% YoY rise, respectively.
Fawry’s move towards a digital bank aligns with its strategy to capitalize on Egypt’s evolving financial landscape.