Banque du Caire joined the shareholders of IBAG, the agent of Western Union in Egypt, after it purchased a stake in Banque Misr and Al-Ahly Capital Company - the investment arm of the National Bank of Egypt. This is a strategic partnership that comes as a continuation of the leadership of these banks in receiving transfers from workers abroad, as well as for IBAG, with its agency for Western Union, being one of the oldest operating companies in Egypt in receiving international transfers.
Banque du Caire decided to buy a part of the shares from IBAG company, bringing the total share of the three banks together to 40%, and the share of the original shareholder, “Serhank Group” to 60%. This was done following a great success in allowing the reception of foreign transfers from all countries of the world in dollars and Egyptian pounds through (106) branches of Banque Misr and the National Bank of Egypt as a first stage.
IBAG company is the oldest agent of Western Union International in Egypt, established in 1995, and provides distinguished services to more than 2 million clients, with total transfers amounting to 2.4 million transfers, worth $ 1.6 billion in 2021, through its branches. There are (38) branches distributed geographically throughout the Arab Republic of Egypt, in addition to (106) branches of Banque Misr and the National Bank of Egypt, where the service is available.
Mohamed El-Etreby, Chairman of Banque Misr, said: We are proud of this partnership, which is a supportive step towards digital transformation in Egypt as the company will provide electronic services in the field of money transfer. This follows Banque Misr’s belief in the importance of enhancing financial inclusion and emphasizing the directives of the Central Bank of Egypt and attracting the informal transfers sector to the banking sector. The union between Banque du Caire and this strategic partnership is a step towards increasing foreign cash flows, especially the transfers of Egyptians abroad, which increases the foreign currency coming into Egypt.
Mohamed El-Etreby added that in light of the huge branch base that Banque Misr has with a strong geographical spread at the level of all governorates, an agreement to provide the service was signed through some branches of Banque Misr. The service has been activated in 56 branches so far, and an expansion plan for more branches is being worked on in order to expand the target clients base for the company and work on integrating the informal transfer sector.
Hisham Okasha, Chairman of the Board of Directors of the National Bank of Egypt and Al-Ahly Capital Holding Company stated that this partnership was established within the framework of support to the National Bank and its investment arm for the country’s strategy in digital transformation. He expressed his pride with Banque du Caire joining that partnership, which will add new value that contributes to increasing foreign exchange flows in general and money transfers of Egyptian workers abroad in particular, which increases the chances of attracting new categories of target clients to the banking sector, by making financial transfers available through official means. Mr. Okasha mentioned that the National Bank of Egypt's constant endeavor to study the needs of clients from different groups to provide a variety of products and services that meet those needs, which contributes to activating the principle of financial inclusion and the transformation into a society less dependent on cash. He added that the partnership with IBAG is one of the links with the non-banking sector and a supportive step towards technological transformation, benefitting from the company’s money transfer services. The service saves the recipients of these transfers time and effort, as they can now go to any of the bank branches that provide outlets for IBAG, to receive their money. Money can be transferred within minutes and in addition to that, clients enjoy special exchange rates, and we provide different banking services that support digital transformation. It also enables the client to open accounts of all kinds, purchase certificates and link deposits, in addition to the digital banking services provided by the bank such as electronic wallets and internet banking services.
Tarek Fayed, Chairman, and CEO of Banque du Caire expressed the bank’s pride in joining this strategic partnership with IBAG, the agent of Western Union in Egypt, which happens within the framework of the bank’s continuous efforts to support the activity of money transfer services in line with the directives of the Central Bank of Egypt towards integrating the informal transfer sector in the banking sector and the promotion of financial inclusion. He also noted that this partnership contributes to facilitating Egyptians abroad and their families to send and receive their payments through a wide network of Banque du Caire branches extending from the Delta to Upper Egypt, numbering 248 branches and banking units spread throughout the Republic, which contributes to increasing cash flows of foreigners in general and money transfers of Egyptians abroad in particular, with the provision of banking services to remittance clients. He explains that the service is scheduled to start as the first stage in a group of the bank’s branches, noting that the service will be provided in all the bank’s branches during the following stages in a way that supports the bank’s efforts to achieve financial inclusion and provide a better level of banking services to clients. The Bank intends to enhance the integration between IBAG and the Bank's subsidiaries within the framework of the Bank's strategy to develop and diversify the services provided to clients.
In this regard, Mustafa Sarhank, Executive Chairman of the IBAG Money Transfer Services Company, stated that this step is a practical implementation of the company’s strategic plan aimed at integrating the informal transfer sector into the banking sector, where the target customer base will be expanded through a network of branches of the three largest banks in Egypt, as well as making their various banking services available to these clients, which enhances financial inclusion and introduces a large segment of society that does not deal with banks within the banking system.
Mr. Sarhank added that this step would not have been achieved without the support of the Central Bank of Egypt and its understanding of the company's pivotal role in increasing one of the main sources of state revenue from foreign exchanges by maximizing transfers from Egyptians working abroad, emphasizing the unparalleled cooperation from the bank management and all their cadres and representatives in IBAG Board of Directors.
He added that the company’s strategy with regard to transfers does not end there, but will extend to other horizons in the near future, using digitization in transfers and mobile wallets, based on the experience of the global Western Union company and the experience and abilities of our partners, Bank Misr, National Bank of Egypt, and Banque du Caire, emphasizing that the desired national goal is to achieve deeper financial inclusion, which will have a positive impact on the nation's economy.
