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  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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