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Central Bank of Egypt (CBE)

Egypt

Egypt

Financial consumer protection supervision and data analytics

in partnership with the World Bank (WB)

The Project:

The Cambridge SubTech Lab, together with the WB, will support the CBE to develop a pilot suptech solution to enable the CBE’s financial consumer protection (FCP) supervision unit to detect and respond to new and changing consumer risks in the market in a timelier manner by leveraging consumer complaints data.

A crucial goal of the project is to enhance the CBE’s capacity to keep track of changing consumer experiences and risks to monitor, address and mitigate market failures contributing to such risks.

What is the situation in Egypt?

The CBE is already aware of various examples of risks affecting Egyptian consumers, such as lack of transparency, inappropriate use of consumer data and fraud.

 

 

The Cambridge SupTech Lab and World Bank value proposition:

  • The suptech solution can improve the efficiency and effectiveness of the analysis of complaints data by CBE contributing to:
    • faster resolution of individual complaints
    • more efficient monitoring of the consumer finance markets
    • more effective risk-based policy making by the central bank.
    • improved effectiveness of consumer protection and lower risks
    • increased trust of consumers in financial services including digital financial services.
  • The suptech solution will enable the FCP supervision unit to undertake timely tracking of the number and nature of complaints made to supervised entities.
  • It will also support the effective capture and management of consumer complaints received directly by CBE.
  • Collection of data, providing invaluable insights to assist CBE’s financial consumer protection supervision unit to develop a risk-based approach to FCP supervision, enabling it to identify and target the most critical risks faced by consumers and the biggest weaknesses in provider behaviour, and give the necessary data to inform supervisory and enforcement actions more efficiently.
  • Building off the recently enhanced regulatory framework for consumer complaints in Egypt
  • In Egypt, the proposed solution would comprise a platform allowing supervised entities to upload complaints data in a standardised format, according to CBE requirements and specifications and/or providing for data-pulling by CBE allowing direct access to complaints data from supervised entities’ systems.
  • The CBE would then be in the position to transform the data into data sets as relevant for the required purposes. The system would comprise an electronic data warehouse, supporting automation and streamlining reporting and alert processes that inform and facilitate supervision, and assisting to reduce the need for manually produced reports and improving accuracy and consistency of data. The solution would also assist with more frequent data capture and analysis.
  • In addition to supporting the design and development of the pilot suptech solution, the Egypt project will support the procurement process for the hardware and software licensing/acquisition.