In a landmark policy shift, the Central Bank of Egypt (CBE) has extended banking access to a younger demographic, allowing other financial institutions to open accounts for individuals aged 15 to 21 without the need for guardian approval. This new mandate, which lowers the previous age limit from 16, is part of a broader strategy by the Egyptian government to drive financial inclusion and modernize the financial sector, particularly targeting tech-savvy youth as a fresh segment for growth. The policy shift is a game-changer for Egyptian fintechs looking to expand their customer base.
This age shift is expected to bring millions of new users into Egypt’s formal banking system. CBE officials emphasized that banks are encouraged to provide age-appropriate banking products that align with the specific financial capabilities and risk profiles of young account holders. The regulatory update builds on a 2021 directive that first allowed account openings without guardians for those aged 16 to 21, aiming to empower young Egyptians by giving them earlier exposure to formal financial services.
Expanding Financial Access and Modernizing ID Regulations
The regulatory change aligns with Egypt’s recent adjustment of the minimum age for acquiring a national ID card. Following a decision by the Interior Ministry in 2022, citizens can now obtain an ID card at 15, down from 16. This synchronizes identification policies with financial regulations, facilitating the integration of younger Egyptians into digital banking and financial transactions.
In recent years, CBE has accelerated initiatives to promote digital financial services, evident in the rapid expansion of mobile wallet usage. Mobile wallets, which have gained traction as a convenient tool for managing day-to-day transactions, saw an uptick to 39.4 million accounts in 2023. As of September, Egypt registered 96.2 million mobile wallet transactions, amounting to approximately LE 11.64 billion, a testament to the increasing digital engagement by consumers across age groups.
The growth in mobile wallet accounts, driven by the CBE’s support and consumer demand for cashless transactions, has fueled a surge in QR code-based transactions, commonly referred to as Request to Pay (R2P). By September of last year, around 760,000 R2P transactions were conducted via mobile wallets, including purchases made through apps, websites, and at retail points. Such transactions provide a simpler, more accessible way for young Egyptians to make payments, as the CBE seeks to normalize digital financial habits among the younger population.
Alongside its digital initiatives, CBE has been aggressively expanding Egypt’s electronic point-of-sale (POS) network. The central bank reported that 300,000 additional POS terminals have been deployed in recent years, bringing the total count to over 1 million devices nationwide. By increasing the availability of electronic payment options, CBE aims to foster a cashless economy that is more accessible to younger consumers and rural populations, who have traditionally been underserved by conventional banking.
The CBE’s recent reforms indicates the institution’s commitment to expanding financial inclusion through innovative digital channels, with young Egyptians emerging as a key focus. With easier access to banking services, Egyptian youth will have the tools to participate more fully in the economy, setting the stage for a digitally fluent generation familiar with modern financial tools from an early age. For Egyptian fintechs, this policy shift opens new customer base and business opportunities to create youth-oriented products and leverage Egypt’s young population as a foundational element of future growth in the financial sector.
As Egypt continues to adapt its policies to an evolving digital world, the CBE’s steps illustrate a pragmatic approach to building a future-ready financial system that broadens access, enhances security, and accelerates digital adoption across all demographics.