EGBank: Mining the youth market to make a mint
Despite Egypt’s recent economic challenges, EGBank has been reducing its non-performing loans (NPLs) and increasing its profits. As of December 2017, the bank’s assets reached E£56.2bn ($3.1bn), up from E£45.2bn the year before. Over the same period, its NPLs dropped from 2.2% to 1%, and its profits rose from 401.5m to E£500.6m.
The bank says that more than two-thirds of its loans go to infrastructure and manufacturing projects, and a 2017 financing deal worth $20m with the European Bank for Reconstruction and Development should help bolster EGBank’s trade financing. Small companies are also on EGBank’s radar, with plans for E£1bn in financing for them launched in 2017.
Engage with youth
Led by Nidal Assar, EGBank is targeting the young and unbanked in order to rank among Egypt’s top 10 banks. Its MINT programme was born as part of the bank’s restructuring into a ‘youth bank’ and includes an incubator. “We want to deliver on this promise and to engage with youth on many levels, so that it’s not just used as a marketing slogan,” Susanne Wardani, head of youth banking at EGBank, tells The Africa Report.
The flagship MINT banking product is a savings account with a debit card. In 10 of its 50 branches, EGBank has a dedicated personal banker for this segment who prioritises expanding the number of young customers. “It’s like the wealthy customer banking experience in other banks but available now to this younger segment,” adds Wardani.
The incubator programme, known as the MINT Hub, was launched this year. In collaboration with Cairo Angels, an angel investor network, the incubator accepted and graduated its first cycle of 10 start-ups in June.
The MINT Hub will have a large co-working and activities space in downtown Cairo that is currently being renovated and will be ready by next year. It will target university students and offer courses, activities and education programmes that promote financial literacy.
This article first appeared in the September print edition of The Africa Report magazine