The Bank in Your Pocket.. Is the Era of Branchless Banking Approaching?

In Egypt, digital transformation is no longer merely a future trend. The Central Bank of Egypt issued rules for licensing and supervising digital banks in July 2023. In March 2026, a decision approving the licensing of ‘One Bank’ to conduct digital banking business was published, subject to completing the prescribed procedures. In August 2026, the Central Bank issued rules governing the digital financial identity system for electronic customer verification. These developments lay the foundations for a broader phase of remote banking services.

From a Mobile App to a Fully Digital Bank

There is an important difference between using an app provided by a traditional bank and dealing with a fully digital bank. An app lets customers use services linked to their existing accounts, such as checking balances, transferring money, or making certain payments. A digital bank, by contrast, bases its operating model primarily on offering products and services through electronic channels, under the applicable licensing requirements and regulatory controls.

This distinction does not mean that traditional banks have fallen behind; many have invested in apps, technological infrastructure, and modern payment methods. Competition in the coming years will most likely center on the customer experience: how easily an account can be opened, how transparent fees are, how quickly transactions are completed, and how good the assistance is when needed.

Opening an Account from Home.. A Step with Practical Impact

Electronic customer identity verification is a key element of this transition. The rules announced by the Central Bank in August 2026 aim to enable customer identification, identity verification, and data updates electronically, along with electronic acceptance of terms and conditions and transaction authentication. Implementing these capabilities, according to each institution's readiness and approved controls, could reduce the need to visit a branch for procedures that previously required attendance in person.

For the average citizen, this may seem simply a way to save time spent waiting or traveling. But for someone living far from service centers, or a small-business owner who cannot leave work for hours, it offers a greater opportunity to access formal financial services without additional burdens. Here, technology becomes a tool for widening access, not merely a convenience.

79% Financial Inclusion.. Beyond Owning an Account

Central Bank data indicate that financial inclusion reached 79% by the end of June 2026, equivalent to 56.4 million citizens aged 15 and above holding active financial accounts. It is important to clarify that this measure is not limited to bank accounts; it also includes postal accounts, mobile wallets, and prepaid cards.

These results reflect significant progress in making financial services available. However, the greater economic value emerges when accounts become a means of regular, secure use: saving small amounts, receiving payments, settling obligations, and managing a business efficiently. Developing digital services therefore complements the efforts of the state and the Central Bank to strengthen financial inclusion and financial literacy.

Will Bank Branches Disappear?

It is too early to say that traditional branches will disappear. Some customers prefer direct contact, and certain services or complex cases may require specialist support or in-person procedures. Accessibility for older people and those with differing needs also remains important. The more likely outcome is that the branch's role will gradually evolve from a place for routine transactions into a center for advice, problem-solving, and value-added services.

The relationship between the branch and the phone is therefore not one of elimination, but of a better distribution of roles: simple transactions are completed digitally, while needs requiring human interaction receive appropriate support. In my view, this model's success depends on giving customers the freedom to choose the channel that suits them best, rather than pushing everyone into a single channel.

Trust and Security Before Speed

As digital banking services expand, protecting data, combating fraud, and improving customer awareness become increasingly important. The digital bank licensing rules and digital financial identity controls include requirements concerning cybersecurity, supervision, and operational governance. This underscores that innovation cannot be separated from protecting customers' rights and the stability of the banking system.

In practical terms, users need to rely on official apps and channels, avoid sharing passwords or verification codes, and review transaction details before approving them. Banks, meanwhile, must make security procedures understandable and uncomplicated, and provide effective channels for inquiries, reporting incidents, and resolving problems.

The Future Is Not Without Banks.. It Is About Services Closer to Citizens

The expansion of digital banking services is a natural extension of Egypt's efforts to modernize its financial infrastructure, improve service efficiency, and support the digital economy. The success of this phase is not measured only by the number of new apps, but by citizens' ability to use them confidently, small businesses' ability to benefit from them, and banks' effectiveness in delivering fast, secure, and fair services.

In conclusion, the era of relying entirely on branch visits has already begun to change. Yet the future of banking is less about buildings disappearing than about shortening the distance between customers and their services. When a bank becomes closer to citizens through their phones, while human assistance remains available when needed, technology turns from a slogan for development into a tangible everyday benefit.