Egypt’s much-anticipated push into digital banking is officially underway, but the exclusive club of initial license holders is composed of the region’s most established financial players. This week, Qatar National Bank (QNB) Group, the Middle East and Africa’s largest financial institution, announced it had received preliminary approval from the Central Bank of Egypt (CBE) to launch its digital-only bank, “ezbank,” with an issued capital of EGP 4.5 billion ($95 million).
QNB’s announcement follows the licensing of “One Bank,” an entity wholly owned by Egypt’s state-backed banking giant Banque Misr. The pattern is clear: instead of paving the way for a new wave of independent challengers, Egypt’s regulators are entrusting the digital frontier to the incumbents. This move signals a deliberate strategy to prioritise stability over disruption, creating a formidable barrier to entry for the nation’s burgeoning startup ecosystem.
A High-Stakes Regulatory Wall
The primary reason for the corporate dominance lies in the stringent rules set by the Central Bank of Egypt. The regulations effectively sideline independent ventures by design.
Aspiring digital banks are required to have a minimum issued and paid-up capital of EGP 2 billion ($41 million), a figure that doubles to EGP 4 billion ($83 million) if the bank plans to finance large corporations. This alone is a significant hurdle for most startups.
More critically, the rules mandate that the majority shareholder must be a financial institution with a proven track record, holding at least a 30% stake. This clause makes it nearly impossible for a venture-backed startup without a corporate banking parent to enter the race, explaining why the first two licensees are ventures backed by QNB and Banque Misr.
These CBE guidelines are crafted to ensure that new digital players are secure, transparent, and built on a foundation of established banking expertise. However, it also means the market will be shaped by the strategies of legacy institutions rather than the agility of new fintech innovators.
The First Contenders: A Giant and a Late Starter
The two approved players, while both backed by giants, present a study in contrasts.
QNB’s ezbank enters the scene with the momentum of its parent company, which operates in over 28 countries. The bank aims to provide seamless financial services through mobile-first platforms and AI-driven tools, leveraging QNB’s vast resources and international experience.
Meanwhile, One Bank has had a slower, more deliberate journey. Established in 2020 by Banque Misr’s innovation arm, it only recently secured its final license. Despite appointing a high-profile board led by former Deputy Minister of Communications, Khaled El Attar, its public launch has been pushed back significantly to 2026. This two-year delay from its initial target highlights the complexities of building a fully regulated digital bank from the ground up, even with powerful state backing.
An Uncontested Market Opportunity
The prize for these new digital banks is immense. Egypt boasts a large, young, and increasingly tech-savvy population, yet a significant portion remains unbanked or underserved by traditional financial institutions. Digital-first banking is seen as the key to unlocking financial inclusion and driving the country’s digital economy.
While One Bank and ezbank hold the first official digital banking licenses, they aren’t entering an empty field. A vibrant ecosystem of payment platforms and digital wallets like Telda and Nexta have already captured the attention of young Egyptians. These fintechs, however, cannot offer a full suite of banking services like lending and interest-bearing deposits.
The critical question now is whether these new, well-funded digital banks can execute with the speed and customer-centric focus of a startup. With licenses secured, the focus shifts entirely to technology, product development, and branding. The Egyptian market will be watching closely to see if these incumbent-backed ventures can finally move from the drawing board and into the hands of millions.