Digital

Banking and GTS

The past three years have seen banks move quicker than ever to act on digitalization trends. At CIB, we’re not only adopting them, but we’re actively engaged in educating our clients about evolving digital banking solutions and offering them accessible tools that make banking even more simple.

In 2018, the digital business plan was built on offering an outstanding, trusted, and efficient digital financial experience tailored to customers’ needs. It also sought to support the Bank’s growth while keeping costs low.

With this in mind, CIB’s digital strategy framework centers on four main pillars: enhancing the customer experience, increasing migration and automation ratios, optimizing cost, and generating revenue.

Innovation and Fintech

CIB Fintech Engagement was initiated to cater to fintech startup needs, providing them with the tools they need to survive in today’s competitive market. In 2018, we established an echo-model of support, built strategic alliances serving CIB’s financial inclusion objectives, and formulated a pipeline of fintechs to nurture and introduce to the market.

Innovation Activities: Digital Studio

CIB Digital Studio serves as a hub that focuses on fostering a culture of innovation within the Bank. By challenging employees to adopt a flexible mindset and think outside the box, the Digital Studio aims to accelerate CIB’s digital capabilities.

2018 Highlights

We took part in the first workshop organized by potential partners, an introductory session called “Innovation and Pizza” that explained the innovation process, the “4 Ps” of innovation, the “5 traits of successful innovators,” and the ideation process.

2019 Forward-Looking Strategy

In 2019, we plan to continue expanding CIB’s internal innovation by conducting awareness sessions and thinking seminars. We will also implement an “Idea Management Solution” in collaboration with potential partners, an automated and monitored intermediate platform between the innovation team and CIB employees. This platform will encourage employees to come up with new ideas, allow the innovation team to create specific challenges, and address defined pain points in digital banking.

Fintech

CIB strives to provide clients with innovative solutions to meet their financial needs and expectations while maintaining sustainable growth through creating value for stakeholders.

The Bank collaborated with AUC Venture Lab (AUC V-Lab) to create AUC Venture Lab Fintech Accelerator, powered by CIB. Its objective is to bolster the fintech scene in Egypt and help select startups grow and enter the market. The accelerator has completed two cycles in 2018, graduating 10 startups and supporting over 25 entrepreneurs. It has helped bring to the market innovative fintech startups such as PayMe, 7aweshly, Gameya, Ordera, and others.

In addition to CIB’s long-standing sponsorship of AUC V-Lab, the Bank has collaborated with Temenos, the market leading software provider for banks and financial institutions. This tripartite agreement between CIB, AUC V-Lab and Temenos will support startups participating in upcoming fintech cycles by giving them the opportunity to test their products and services in a sandbox — a non-production cloud-based version of the Temenos T24 core banking system.

2018 Highlights
  • Rolled out the third fintech track cycle, which introduced four potential startups to the market.
  • Supported Hona Al Shabab, a competition hosted by leading Egyptian network CBC for emerging business entrepreneurs. Through this sponsorship, 30 startups have been introduced to the market in fields such as health, e-commerce, food, payments, and fintech.
  • Utilized our strategic partnerships and agreements with Orange Lab and Dell EMC to support innovation activities and increase awareness.
2019 Forward-Looking Strategy

In 2019, CIB Fintech Engagement aims to use fintech companies as a channel to launch profitable and innovative technology-enabled business models to serve the Egyptian market that could be replicated in other emerging markets. This strategy will serve two objectives: contribute to Egypt’s financial inclusion initiative and explore new business models that fit existing business lines within the Bank.

ATM Network

CIB maintained its competitive advantage in the Egyptian market through operating the largest ATM network among private banks. By the end of December 2018, the Bank’s network was comprised of 917 ATMs. The network provides customers with a variety of services, including cash withdrawal and deposit, credit card settlement, bill payment, mobile top-up, mobile wallet cash-in/out, and check deposit services.

2018 Highlights

  • Maximizing the utilization and return from our ATM network was a key focus area during 2018. The average number of transactions across the ATM network increased by 12% y-o-y as of year-end, on the back of relocating low-utilized ATMs to higher footfall locations and matching customer needs with ATMs’ wide range of value-added services.
  • The total ATM network increased by 98 machines to 917 in December 2018 from 819 in December 2017.
  • The ATM network continues to serve branch migration efforts. As of December 2018, it achieved a 95% migration rate in cash deposit transactions below EGP 10,000 versus branch deposit transactions. It also achieved a 98.35% migration rate in cash withdrawal transactions below EGP 20,000 versus withdrawal transactions at branches.
  • Corporate deposit card transactions saw a 128% increase as of December 2018 to 113,000 transactions with a total deposit value of EGP 731 million.
  • CIB opened numerous ATM centers in several locations such as Semouha in Alexandria and Hurghada to better serve high demand on ATMs in these areas.

2019 Forward-Looking Strategy

Going forward, we will continue our efforts to encourage customer migration from branches and enhance the customer experience. We will continue adding new functionalities at competitive prices and maximizing the utilization and profitability of our ATM network. We also plan to focus on various in-branch digital tactics to further optimize average waiting and service times.

Internet and Mobile Banking

CIB Internet and Mobile Banking enable customers to easily access their accounts and conduct a broad range of financial transactions. In 2018, we focused on enhancing our Internet Banking customer experience, which boosted our Internet Banking subscribers by 95% y-o-y as of December 2018 and the number of transactions by 20% y-o-y as of December 2018. Our Mobile Banking app user base continued to increase, with a 151% y-o-y increase in the number of transactions.

Additionally, CIB is in the analysis phase of implementing a new digital platform. It will create a seamless multichannel experience across our digital channels and provide customers with a premium Internet and Mobile Banking experience with a range of banking functionalities and newly added services.

2018 Highlights

Launching the new Internet Banking user interface, which provided an enhanced user-friendly experience with newly added functionalities such as:

  • Organize routine transactions in one convenient location, making it easier to initiate transfers using a one-time password token.
  • Activity Calendar: Use the calendar view to keep track of past, present, and future transactions on all accounts.
  • My Money Tool: Label and group transactions to easily review them and track spending.
  • Notifications: Customize and receive notifications on the Internet Banking homepage regarding account balances and exchange rates.
  • Implementing various customer experience enhancements over the Mobile Banking app that focus on improving usability and ease of use.
  • Creating a new Internet Banking interface for the newly launched Private segment.

2019 Forward-Looking Strategy

Throughout 2019, CIB will focus on providing a customer-centric Internet and Mobile Banking experience with the help of our new digital platform, adopting emerging online banking trends, offering new digital services, and collaborating with third parties.

Phone Banking and Call Center

CIB’s Call Center handled a total of 4.4 million calls as of December 2018. We have focused on offloading calls from the Call Center to the IVR self-service by increasing customer awareness. This strategy enhanced the eligible migration rate for all financial inquiries to 78% as of December 2018 versus 70% in December 2017. We explored various chatbot solutions to help answer customers’ general non-financial questions such as branch working hours and product features.

2018 Highlights

  • Launched instant credit card settlement in September 2018.

2019 Forward-Looking Strategy

IVR: We plan to introduce a new feature to our IVR to serve CIB customers and non-customers, which will reduce our average call handling time and boost our Phone Banking penetration rates.

Call Center: We aim to transform the Call Center into a multi-channel contact center by adding new touch points such as live chat and chatbots.

CIB Mobile Payment (Smart Wallet)

CIB Smart Wallet offers an innovative payment experience serving the banked and unbanked segments by providing a convenient, secure, and cost-effective way to make purchases using mobile devices. Customers can easily pay bills, recharge their mobile prepaid line, send money to any other wallet holder in Egypt, and deposit and withdraw funds from CIB’s ATM network or any of our authorized banking agents.

In 2018, we focused on improving the quality of the customer experience by leveraging our strategic partnerships, growing our banking agent network to register new wallets, and better reach our target segment. We also partnered with existing vendors to expand the number of available services on the wallet and boost client satisfaction. Additionally, we collaborated with other teams in the Bank to offer a higher value proposition through launching products over the wallet and meet clients’ needs by monitoring and analyzing their behavior and transactional history.

2018 Highlights

  • Smart Wallet transaction volume rose 51%, and its value surged 92% y-o-y.
  • Ran marketing activities and multiple campaigns to increase wallet acquisition and activity rates.
  • Updated the Smart Wallet user interface to enhance the user experience.

2019 Forward-Looking Strategy

Throughout 2019, CIB will work on improving the user experience and customer journey. We will upgrade digital user interfaces and platforms and adopt a multi-vendor strategy to derive the most value from existing assets. In doing so, we will build the capacity to service every kind of customer in the best possible manner. We will also focus on our distribution network to further leverage our strategic partnerships and grow our agent network. This will allow us to register new wallet customers and expand our reach.

CIB Business Online and Corporate Services

Cash Management

CIB is committed to serving our customers’ sophisticated business needs through implementing the most convenient, comprehensive, and competitive banking solutions. The Bank is committed to continuously improving its digital migration strategy and focusing on the e-payments market by introducing the most comprehensive payment products.

Corporate Download Portal

The portal’s main function is to provide the most sophisticated and comprehensive reports, which allow customers to closely monitor escrow account movements.

  • Post Dated Check (PDC) Reports: Providing customers with PDC movements and details to support companies in key sectors. It allows real estate corporates, for example, to closely follow their projects, unit payments, and installments processes.
  • Extra Teller Info Details Service: Providing cash-rich corporates in sectors such as petroleum, real estate, and education with reports showing the selected or desired values regarding counter deposits. It also provides other reports such as:
    • Loans and time deposit position
    • Historical statements
    • Outgoing check reports
    • Swift statement MT940

Automated Clearing House

The Automated Clearing House (ACH) network is a reliable and efficient nationwide electronic fund transfer system governed by the Egyptian Banks Company (EBC) under the supervision of the CBE.

2018 Highlights

A noticeable increase in the number of transactions led to a significant impact on cash management cost synergy, reaching EGP 178 million as of December 2018, along with direct revenues, reaching EGP 26.4 million on the back of:

  • Presenting the ACH Direct Credit model and enrolling the largest syndicates in the pension payment cycles with 690,751 transactions as of December 2018.
  • Becoming the market leader by having the largest market share among Egyptian banks and ranking number one for commercial domestic payments. This included ACH Receivable and ACH Payable (ACH Direct Credit and ACH Direct Debit) among Egyptian banks on the ACH online platform.
    • ACH Payable: Internal payments reached 895,506 with a value of EGP 13.5 billion and outgoing payments reached 1,156,267 with a value of EGP 25.3 billion as of December.
    • ACH Receivable: Collection transactions reached 2.26 million with a value of EGP 10.4 billion.
  • The number of ACH Direct Credit transactions reached 2 million in December 2018 versus 1.5 million in December 2017.
  • The number of ACH Debit transactions reached 2.26 million in December 2018 versus 1.6 million in December 2017.
  • The number of clients reached 9,247 as of December 2018 versus 4,905 in December 2017.
  • Total Migration Rate as of December 2018:
    • Outgoing transfer migration rate reached 86% of total bank transactions.
    • Internal transfer migration rate reached 62% of total bank transactions.
2019 Forward-Looking Strategy

We plan to increase the number of subscribers and transaction volumes by expanding international remittance payments and targeting new markets and areas to increase our market share.

Core Digital Business

  • Increasing CIB market share of international remittance solutions.
  • Providing custody, securities, liquidity, and treasury modules over our online platform.
  • Providing SMS and email notifications for banking transactions (debit and credit transactions).
  • Revamping Corporate Download Portal reports.
  • Revamping online portals (CIB Business Online and ACH) to increase and improve the customer experience and decrease turnaround time for online transactions.
  • Integrating with corporate financial systems such as oracle, ERB, and others.

Strategic Agreements

  • Partnering with Egypt Post Office to offer over-the-counter agreements that allow customers to send funds to their chosen beneficiary through our ACH channel; the beneficiary will be able to withdraw the amount at any post office branch using their national ID.

Trade Finance Management

CIB Trade Online is our new market-leading online trade channel, offering clients the ability to conduct and manage their trade finance transactions online.

CIB Trade Online provides customers with more transparency and visibility into their trade transactions, as well as saving time and money through its easy access, streamlined processing, and elimination of paperwork.

2018 Highlights

  • Reached 1,621 registered customers with 18,250 transactions over its trade portal with a migration rate of 22% as of December 2018, and an EGP 9.3 million reduction in the cost of online trade transactions. Trade Finance’s adoption rate as of December 2018 for GCR was 38% and BB 11%.
  • Launched the Export Collection-Direct Collection via the CIB Business Online portal, a significant step toward improving the customer experience and relationships associated with our trade service offerings over CIB Business Online. The new outgoing document collection service, Export Direct Collection, allows CIB Business Online customers to export their shipping documents directly from their premises without visiting a CIB branch and gives them direct access to track documents during every stage until they reach their final destination.
  • Applied a re-engineering processing cycle for unconfirmed export letters of credit (ELC) at all trade service hub branches. All shipping documents presented by customers under unconfirmed ELCs will now be completed on the same day.
  • Offered the Bill Financing Module over CIB Business Online as a discounting program to serve exporters asking to discount/forfeit their ELCs for immediate access to cash to serve their working-capital requirements.

2019 Forward-Looking Strategy

Starting 2019, we plan to continue focusing on customer migration from branches to the online portal to allow customers to perform their transactions conveniently 247 without the need to visit a branch. We will provide our customers with the ultimate digital solutions to benefit their businesses and support their growth ambitions. We will continue to enhance Business Online, adding features that make it a more convenient and secure platform for trade and supply chain finance, cash, treasury, and lending services.

Corporate Payment Services

As part of the Ministry of Finance’s aim to collect all government payments electronically, an agreement was reached between CIB and E-Finance Company (which develops and operates e-payment platforms and channels) to enable customs, tax, and other government authorities to receive payment and collection services through banks offering these service using the E-Pay portal.

CIB in cooperation with E-Finance successfully provided bill payment services for customers using E-Pay’s generalized portal. Currently, customers pay government dues at branches with the help of bank clerks who utilize E-Pay service screens.

To provide the best quality services, we established the Corporate Payment Service (CPS) portal, which allows corporate customers to pay and manage their government payments in the comfort of their offices, 247.

2018 Highlights

  • CIB was ranked number one among Egyptian banks in e-finance government online payments.
  • CPS reached 512 registered customers with 20,750 transactions and a migration rate of 33% as of 2018.
  • Achieved a revenue of EGP 105 million as of December 2018.
  • Added the new Suez Canal Unified Invoice Service to the E-Pay portal, giving us the ability to cover the payment of taxes, customs, charging customs, social insurance, and private university tuition fees.

2019 Forward-Looking Strategy

Starting 2019, we plan to continue focusing on corporate customer migration from branches to the CPS portal to allow them to perform their transactions conveniently 247 without the need to visit a branch. Moreover, we will focus on providing governmental collection services for corporates and consumers over the Bank’s digital channels by giving individual customers the ability to pay for all government services through these platforms.

Global Securities Services (GSS)

In 2018, CIB was recognized as the best sub-custodian in Egypt by Global Finance for the ninth consecutive year. It recognized the Bank’s distinguished services provided to more than 26,000 clients with total assets under custody of EGP 367.5 billion through processing more than 300,000 transactions annually.

2018 Highlights

  • Attracted new portfolios worth a total of EGP 16 billion during 2018, diversified between scriptless and physical securities.
  • Increased fixed-income investments under custody significantly with a 136% growth in T-bills as of December to EGP 47 billion.
  • Appointed as the local sub-custodian for Alexandria Mineral Oils Company (AMOC)’s new GDR program by global depository bank BNY Mellon.
  • Ranked number one in providing trustee services, handling 19 special purpose vehicles (SPVs) out of 22 SPVs in the market with total assets of EGP 7.7 billion.

2019 Forward-Looking Strategy

  • Enlarge CIB’s custody market share through registering the bank’s prime corporate clients in the central depository.
  • Focus on securitization services by approaching real estate, leasing, and financing companies.
  • Introduce new investment tools to attract new clients to invest in the stock market and increase market liquidity.

Digital Governance

Digital Governance is a dedicated division tasked with managing collaborations between the Digital Banking and GTS team and the Bank’s internal and external stakeholders.

2018 Highlights

  • Collaborated with the Federation of Egyptian Banks (FEB), the Federation of Egyptian Industries (FEI), and others in a study on the transformation of the Egyptian economy to a cashless society.
  • Presented a detailed study to the FEB discussing the challenges of the current CBE mobile payment regulations and CIB’s suggestions for its enhancement.

2019 Forward-Looking Strategy

The Digital Governance team will continue working tirelessly to ensure compliance across the Bank’s digital channels. It will continue challenging stakeholders to adopt new technologies and increase their digital appetite and ensure that digital products, strategies, and financial inclusion efforts fall in line with regulatory guidelines and regulations updates.

Digital Banking and GTS Awards

The Corporate Channel Management Department received the following awards from Global Finance:

  • Best Corporate and Institutional Digital Bank in the Middle East in 2018
  • Best Online Cash Management Providers
  • Best Trade Finance Services
  • Best Online Portal Services
  • Best Sub-Custodian Award
  • Best Information Security and Fraud Management
  • Best Payments and Collections, Liquidity, Working Capital Optimization, Short-Term Investments, and Money Market Fund

It also received the award of Financial Inclusion Champion of the Year by FinTech Galaxy.