CEO of Aman Financial Services Hazem Moghazy
AMAN Group, which is owned by Raya Holding (76 percent) and the National Bank of Egypt (24 percent), specialises in providing consumer finance, micro finance, small and medium-sized enterprises finance, and e-payments along with the latest released saving service, all of which represent the cornerstones of financial inclusion.
Moghazy said that the Group plans to tap the insurance industry without adding further details.
He added that the Group also targets adding autos and a number of tech solutions to be financed under its purchasing in instalment activity.
During June, AMAN for Microfinance –a subsidiary of AMAN Group– launched a new investment fund on Wednesday called AMAN Youm-B-Youm (Day by Day) with total investment value of EGP 100 million, EGP 25 million of which are for the subscription phase.
Moghazy explained to Ahram Online that the fund’s savings will be mainly invested in Treasury bills, which are considered risk-free sort of investments.
“The ongoing challenges are expected to raise demands on financial services extended by the non-banking sector and boost purchasing in instalment activity due to rising prices caused by the global inflationary wave. They are also expected to raise demand on the saving services that we launched due to the easy way of doing a transaction to the fund”, Moghazy expounded.
"AMAN Day-by-Day or “AMAN Youm-B-Youm” is a daily-revenue saving fund that targets individuals and corporates, in which they can deposit and withdraw money through the company’s Points of Sales that are available with 150,000 merchants across the country around the clock, thus the client won't have to go to the bank as usual," Moghazy said.
Legally, AMAN is one of the very first companies to obtain the License of the Financial Regulatory Authority to establish such a daily investment fund.
In this respect, Moghazy said that the fund is projected to reach EGP 100 million in investments within its first year, with the general trend of people to save money amid the ongoing global economic challenge and elevating inflation.
Micro-finance industry, for instance, has increased by 40 percent annually since 2016. This increase dropped to 18 percent in 2020 due to the impacts of the COVID-19.
Going forward, Moghazy expected non-banking financial services to witness a boom in the local market fuelled by the ongoing economic challenges that encourage clients to rely more on such services.
“During 2022 and over the coming three years, micro-finance is expected to increase by 40 percent. Consumer finance will also increase due to the issuance of the new law that governs the activity for the first time. Consumer finance increased by 100 percent in 2021 compared to 2020. It is expected to grow by 50 percent over the coming four years”, Moghazy explained to Ahram Online.
In February, law no.5 for 2022 that regulates the development and use of financial technology in the non-banking financial activities came into effect with the key mission of availing the expansion of technology in the non-banking financial sector, coming in line with the government’s financial inclusion strategy.