[Egypt] National Postal Authority and Commercial International Bank sign MOU on regulation of financial services
The National Postal Authority (NPA) and the Commercial International Bank-Egypt (CIB), have signed a Memorandum of Understanding (MoU) for the regulation of financial services and the establishment of a financial inclusion base.
According to Essam al-Sagher, chairperson of the NPA, this protocol allows the authority to deliver Egyptian remittances through its branches nationwide; in collaboration with the CIB through the electronic fund transfer system ACH from the Egyptian Banks Company.
The protocol also allows the authority to provide financial services to small and micro projects, including collection, notification, and marketing among its clients, as well as providing the payment service of dues to the bank’s customers through pre-paid postage cards. The authority would also collect individual dues, including the installment facilities, credit card payments, and smart portfolio services of withdrawal, deposit, and registration in NPA branches across the country.
This protocol comes within the CIB’s strategy to increase the its banking service outlets for its customers. According to Hisham Ezz Al-Arab, chairperson and managing director of CIB-Egypt, Egyptian remittances, the most important foreign currency resource, will be transferred directly from the CIB to the NPA, which will then deliver them to its customers through its nationwide branches.
With regard to Smart Wallet services, Ezz al-Arab pointed out that providing this service through the post offices will contribute to spreading this type of banking services.
He noted that the concerted effort with major economic entities, such as the National Postal Authority, would increase the volume of financial transactions in the official market and promote small- and medium-sized enterprises (SMEs), especially in light of the continued development of electronic and digital banking solutions that provide banking operations with ease and at lower cost support.
The cooperation between major economic entities will increase the volume of financial transactions in the official market and support SMEs, Ezz al-Arab said.