Topics
- Alternative Data
- Enabling Environment
- Fintech
- Policy, Regulation and Government Initiatives
- Underserved Groups
Region
Partner
- FMO
This report explores the strategies that Egyptian fintechs are using as they aim to address the scarcity and dormancy of data trails needed to expand access to marginalized populations. Based on insights gained from a series of interviews with providers and other market players, we introduce a framework of these strategies and explore the barriers and challenges in the data economy, while identifying a series of recommendations for key stakeholders to develop a more effective data ecosystem.
Access to reliable and comprehensive data is fundamental to achieving financial inclusion, as it enables financial institutions to assess creditworthiness, tailor financial products, and extend services to underserved populations. In Egypt — which has a large informal economy, high mobile connectivity, and significant venture capital investment — fintechs are targeting either data scarcity or data dormancy to produce data trails for consumers operating outside the digital economy. Despite these innovative efforts, fintechs face numerous barriers, including regulatory hurdles, the absence of robust data exchange infrastructure, and inadequate data strategies that tend to over-collect data without a purpose. In order to sufficiently address these barriers to create data trails, the authors of this report provide specific recommendations for policymakers and regulators, industry associations, investors, and fintechs and digital platforms to act in a coordinated effort to extend financial services to underserved populations in Egypt.
CFI completed this work as part of our partnership with FMO, the Dutch Entrepreneurial Development Bank to advance responsible digital finance. We would like to acknowledge the support provided by MASSIF, the financial inclusion fund that FMO manages on behalf of the Dutch government.