| Egypt
banking on Internet
Posted:
6 May 2003
BEA Systems surveys the market for technology upgrade solutions
for banks
The banking sector in Egypt, which has been relatively slow to
embrace modern technology, has started showing signs of emergence
into electronic and Internet banking, in the face of a strong drive
by government programmes to create a Knowledge Economy.
Major initiatives such as the floating of the national currency
in January 2003, the five-year plan to boost liberalisation and
privatisation and the launch of innovative IT projects are forcing
Egypt’s banking sector to come out of the shadows and join
the global trend towards electronic banking and Web-based transactions.
The encouraging signs are expected to significantly change the
opinions towards banking in Egypt. Research has shown that approximately
10 per cent of Egyptians have bank accounts. Majority of banks do
not even have a website, although 65 per cent of them have reserved
domain names, according to the findings of the Dubai-based Madar
Research Group.
“Though Egypt has been gaining prominence in terms of telecom
infrastructure, e-government and multi-sector development, its banking
sector has not kept pace with changes” said Diyaa Zebian,
Regional Manager, Middle East & Egypt, eSolutions BEA. “However,
the scenario appears set for a dramatic change as several recent
developments have shown.”
With the government leading the movement towards leveraging the
tools of the Knowledge Economy, the banking sector has begun to
embrace technology for delivering services to consumers. Internet
banking has thus far been limited to a handful of banks, predominantly
foreign, putting the 42 national banks at a major disadvantage.
In recent months, three local banks have taken the first steps to
offering a combination of Internet and PC banking, while several
others are planning to offer Internet banking during this year.
The biggest drive for Internet banking is led by four state-owned
commercial banks, which collectively control 60 per cent of all
banking assets in Egypt, including two that are leading the way
with a combined investment of US$ 10 million deals to upgrade IT
capabilities.
“Egypt holds immense potential for leading edge banking solutions
once the population’s mindset has changed,” added Zebian.
“Egypt is home to one quarter of the entire Arab population
with more than a 20 million workforce, making it the largest retail
market in the region in terms of numbers. The fierce competition
that is visible among banks is a sign that Egypt is set to join
the modern banking mainstream.”
“As a leading global application infrastructure software
company, with a strong presence in the Middle East, BEA is set to
play a major role in this technology upgrade exercise in Egypt’s
banking sector. BEA has provided its tailored WebLogic solutions
for several banks in the Gulf region, including Saudi American Bank,
Arab National Bank, Emirates Bank, National Bank of Abu Dhabi, Egypt
American Bank, Arab Bank and Audi Bank,” said Zebian. “Our
solutions are designed to ensure that the banks make a smooth transition
to modern banking, thereby integrating with the Knowledge Economy.”
The new developments are set to gradually change the Egyptian skepticism
about banking. Banking penetration has been particularly slow in
the past because the prevailing norm was either to keep savings
at home or to join a gamiyah, a self-help financial group formed
by close relatives, friends or co-workers for interest-free loans.
About eSolutions BEA
eSolutions BEA is the sole distributor for this leading global application
infrastructure software company in the Middle East. eSolutions BEA
is head quartered at Dubai Internet City, however it also operates
through partners and resellers in a further nine countries in the
Middle East those included are Saudi Arabia, Kuwait, Qatar, Bahrain,
Oman, Yemen, Lebanon, Jordan and Egypt.
In addition to the sales of BEA’s software products and the
sales services, eSolutions BEA offers professional services, customer
support services and education services.
For more information see www.bea.ae.
About BEA Systems
BEA Systems, Inc. (Nasdaq: BEAS) is the world's leading application
infrastructure software company, providing the enterprise software
foundation for 13,000 customers around the world, including the
majority of the Fortune Global 500.
BEA and its WebLogic brand are among the most trusted names in
business. Headquartered in San Jose, Calif., BEA has 91 offices
in 33 countries and is on the web at www.bea.com.
Posted by Richard Price,
Editor Pipeline Magazine
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