The Central Bank of Egypt (CBE) has instructed banks to incorporate financial literacy into their financial inclusion strategies, expand financial awareness among citizens, and provide advisory services to micro, small and medium-sized enterprises (MSMEs) and entrepreneurs based on the customer segments targeted by each bank.
In a circular issued to bank chairpersons, the CBE said the new requirements form part of its efforts to advance financial inclusion, strengthen financial literacy across society, and enable individuals, entrepreneurs and MSME owners to make sound financial decisions while reducing their exposure to financial risks.
Banks will be required to develop financial education programmes and content aimed at strengthening financial knowledge and skills and encouraging sound financial behaviour. These programmes should keep pace with developments in financial products and services and digital transformation, while promoting awareness of data protection and the risks associated with financial services.
The CBE also instructed banks to educate individuals and businesses of different sizes about the benefits and use of bank cards, digital payment methods and electronic payment channels.
Banks should also raise awareness of electronic payment acceptance and money transfers and develop appropriate incentive programmes to encourage their use, with the aim of strengthening confidence in digital financial services and supporting the transition towards a less cash-dependent economy.
Under the instructions, banks must provide non-financial and advisory services in line with their respective policies, including guidance, capacity building and technical support for entrepreneurs and MSME owners. The CBE said these services should help businesses grow, improve their sustainability and integrate into the formal economy.
Banks were also instructed to establish partnerships with relevant institutions, including universities, government bodies and financial institutions, and participate in national campaigns and events aimed at improving financial awareness.
The CBE called for the use of multiple channels to reach targeted groups across Egypt, with educational materials made available in accessible formats tailored to different needs, particularly those of vulnerable and underserved groups. These should include appropriate formats such as sign language and Braille.
Banks should expand interactive financial education initiatives through field programmes and awareness campaigns, including educational simulations, while using simple and direct messaging.
Digital channels, including banks’ websites, social media platforms and mobile applications, should also be used as relatively low-cost tools capable of reaching broad segments of the population.
The CBE stressed that the marketing of financial products and services must be accompanied by clear and adequate explanations of their features, benefits and appropriate use. Product promotion alone cannot be treated as a substitute for financial education programmes.
Banks will also be required to conduct awareness campaigns addressing fraud risks and emerging methods of financial fraud, helping customers identify fraudulent attempts and understand how to protect themselves.
The instructions require banks to establish clear methodologies for measuring the impact of financial literacy programmes and assessing their effectiveness in improving financial knowledge and behaviour.
Staff training and responsible selling
The CBE also instructed banks to provide regular training for relevant employees, including call centre and branch customer service staff, covering financial inclusion regulations and the needs of MSMEs.
The training should enable employees to provide appropriate information and guidance, build customer confidence and help financially excluded groups access suitable financial services.
Banks must also develop employees’ ability to apply responsible selling standards when offering financial products and services and adopt a customer-focused approach when designing and developing products.
Staff should additionally receive training on detecting and preventing fraud, enabling them to play a greater role in raising customer awareness and promoting the safe use of banking services.
Annual plans and quarterly reporting
Banks will be required to submit an integrated annual financial literacy action plan to the CBE’s Financial Inclusion Sector during the fourth quarter of each year, covering activities planned for the following year.
The plans must include measurable activities, defined outcomes and mechanisms for measuring impact and evaluating effectiveness.
Banks will also have to submit quarterly reports on activities implemented no later than the end of the first month of the following quarter, using a reporting template to be provided by the CBE.
The CBE said financial inclusion departments within individual banks will be responsible for implementing the requirements and coordinating with other relevant departments.
