In the embrace of new technology, every step counts in Egypts digital transformation, according toJacques-Emmanuel Blanchet CEO, HSBC Egypt.

Egypts banking architecture is getting a digital upgrade. Efficiency and personalisation are at the top of the list of preferences as one of the worlds oldest civilisations undergoes a very modern disruption.

Progress and change

Two of Egypts national goals, to modernise its economy and to support a rapidly growing population, are being carried out within a positive economic outlook. The GDP in the fiscal year 2018 is expected to rise by 5.8%. Egypts proactive attitude is driving digital growth in the countrys banking sector and is filtering down to the consumer too. This is largely down to the government, the Central Bank of Egypt (CBE) with the support of the local banking community.

A progressive tone from the top is matched by an enthusiastic response from the banks and the public. This banking marriage is bearing fruit.

Seamless customer experience

From the top down, the National Payments Council is putting in a general framework to shift to a less cash-based society, and to create a national system of payment and cards. Meanwhile, the CBE is investing heavily in developing a seamless customer experience that is more efficient and easy to use.

Both aim to safeguard the value of human interaction i.e. intensifying the level of trust and loyalty in the customer-bank relationship. The countrys approach includes the promotion of innovative technologies in the design and delivery of financial services. This includes the review of digital banking regulations, and the launch of a fund for innovation and talent investments worth EGP 1bn ($558m).

Digital maturation

From the bottom up, Egypts banking community banks and customers alike is keen to embrace change. Nearly all respondents, 90.57%, to an HSBC digital survey carried out in Cairo, expect the internet of things (the trend towards more devices being online) to have a major impact on their existing business model. Leveraging this appetite for digital maturation is key.

The same applies to tailoring services for different socioeconomic and digitally-able customers. Clear communication to improve understanding within the banking community is vital to build trust and adopt digital banking tools. Patience is also essential, as it will take time to shift the national psyche towards digital banking.

Its about family

Egypts tightknit family and social network must be addressed in banks marketing and communication programmes as word-of-mouth recommendations carry significant weight when it comes to building reputations and communicating change. The influence of informal knowledge sharing in Egypt will only heighten as the worlds most populated Arab nation gets busier. The United Nations (UN) expects Egypts 97 million population today to rise to 120 million by 2030 a 23% growth in less than 12 years.

As one of the largest multinational banks in Egypt, and with a presence since 1982, HSBCs unwavering dedication to build its digital knowledge will continue. The bank has been a leading and respected voice on digital advancements for over three decades. Plans to spend $15bn-$17bn on technology, worldwide, up to 2020 are underway, in addition to $6bn in recent years. Such effortswill undoubtedly enhance Egypts digital journey, be it through talent creation, research and development, or tech deployment.

Digital toolbox

There are many new digital methods that Egypts banking community can use. These include the next generation virtual accounts, enhanced liquidity management, and more streamlined mobile collections and payments. HSBC is always working on how to design and deploy new technologies, including machine learning, artificial intelligence (AI), biometrics and blockchain.

HSBC completed its inaugural blockchain transaction for trade finance this year. This is highly relevant for a growing banking community as each transactional step is entirely transparent and accountable. It is also attractive for Egypts growing trade finance market as the countrys gas exports, for example, are likely to rise significantly.

More than half, or 56.6%, of survey respondents to our digital research agreed that international trade has become more difficult over the last three years. This means that making cross-border trade easier by using digital tools is even more critical to sustain Egypts global competitiveness.

Challenges to overcome

As with any market in development, some areas need more attention. These include improving cybersecurity, legal frameworks, and scalability. Therein lies the value of collaboration and knowledge sharing, something that HSBC is able to facilitate.

To take an example globally, banks ties with Fintechs are thriving. HSBCs data showed that approximately $31bn was invested in Fintechs around the world last year. Collaboration agreements and sandbox environments, both promoted by regulators, can help test the relevance of new technologies in Egypts banking community.

We must not fear the unknown. Egypt must keep its best foot forward, for every digital step counts.

Jacques-Emmanuel Blanchet is Deputy Chairman and CEO, HSBC Egypt

2018 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

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