Young Egyptians who live on their phones have long waited for a true digital bank. That is about to change.ย
On August 17, Bank Misr, Egyptโs state-owned commercial bank, secured regulatory approval to rebrand its subsidiary Misr Digital Innovation (MDI) as onebank, the countryโs first fully digital bank. onebank is expected to go live in the fourth quarter of 2025.
Egypt already has a lively fintech scene. Payments giant Fawry, digital wallets, and other lending apps have pushed millions into the financial system. The countryโs financial inclusion rate has jumped to about 70.7% in 2023, up from only 27.4% in 2016. Yet none of these companies became digital banks.
The reason is regulation. Banking licences in Egypt are costly and come with strict capital rules, ranging from EGP2 billion ($42 million) for digital banks to EGP5 billion ($103 million) for traditional banks, which smaller fintechs cannot meet.ย
The central bank has also been cautious, worried about risks that new โbanksโ might bring. As a result, fintechs built their businesses by partnering with established banks, offering payments or lending, but lacking licence independence.
onebank changes the equation. With Bank Misrโs size, the second-largest bank by assets, and state backing, it can launch as a digital-only institution while still carrying the credibility regulators demand. This gives it the chance to compete with fintechs on speed and design while offering the full suite of banking services.
The winners could be consumers. A digital bank means faster account opening, easier transfers, and products built for people who rarely visit branches.
If onebank succeeds, it could open the door for more digital banks and push Egyptโs financial system into a new era.
