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Tuesday, 20 April 2021

Mobile wallet users can now borrow + deposit under new regs

Mobile wallet users will soon be able to access loan and saving services in real time under new regulations (pdf) the Central Bank of Egypt (CBE) issued yesterday. The regs also clear the way for interoperability between mobile wallets and bank accounts, allowing funds to be transferred between them.

Creditworthiness for mobile wallet users will also be determined based on “behavioral evaluations,” including whether or not they keep up with utility bill payments, according to the CBE statement. The new mechanism is designed for borrowers who don’t have credit histories or any prior records with the traditional banking system. State-backed credit rating agency iScore is currently working on setting up this new evaluation mechanism, the CBE said.

The new regs come as the number of mobile wallets in Egypt is growing: The country currently has north of 20 mn wallets, with the value of transactions on these wallets growing a whopping 300% in 2020 to EGP 100 bn, according to the statement. Between March and October last year, the number of wallets jumped at least 17% to 14.4 mn thanks to covid-19.

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