Egyptian digital identity company Haweya has announced that the first phase of its digital identity platform will begin in cooperation with five banks. The service will gradually expand to cover all banks operating in Egypt within a year and a half. Managing Director Tamer Gadallah shared the plans during the Future Digital Countries Summit.
Phased Rollout and Expansion
The initial rollout will involve five banks before the network is extended to Egypt's entire banking sector within eighteen months. A second phase will include companies regulated by the Central Bank of Egypt, such as lenders and other financial service providers. Gadallah also indicated that insurance companies and other institutions could eventually benefit from the digital identity platform.
Cost Savings for Banks
Gadallah explained that digital identity services are significantly less expensive for banks than traditional verification procedures and in branch customer service. A conventional onboarding process can take about half an hour of employee time and includes receiving the customer, photocopying the national ID, collecting documents, and entering records into internal systems. The cost of the Haweya service is borne by the bank rather than the customer, but using the platform is not mandatory for banks.
Reducing Branch Visits for Data Updates
Customer data updates currently generate between 15 and 18 million branch visits in Egypt every year, according to the company. With digital identity, banks can notify customers through mobile applications or text messages instead of requiring them to visit a branch. The customer can then complete verification and data updates remotely before the updated information is transferred to bank systems.
How Digital Identity Verification Works
The customer begins by photographing the national ID, after which the system reads the card's data and encrypted elements, including the 2D barcode and encryption key, in coordination with relevant authorities. Additional verification steps include asking the customer several questions and requesting a selfie through techniques that confirm the person is real and present. The platform also includes measures against deepfake and other manipulation attempts before matching the data with civil registry records.
Role Limited to Identity Confirmation
Gadallah stressed that Haweya does not perform know your customer procedures on behalf of banks. The company provides digital identity verification to prove remotely that the person is the rightful identity holder, while KYC requirements remain the responsibility of each financial institution. Requirements can vary by service, with some products needing only a national ID and others requiring proof of income, employment, or residence.
Regulatory Support and Future Outlook
Legislation issued in 2020 created a legal framework for digital alternatives to traditional in person signatures and identity checks. The platform is expected to support digital banking in Egypt, with the first digital bank projected to begin operating in the fourth quarter of 2026. Gadallah said the broader ambition is to expand digital services and financial inclusion across the country, building on smartphone adoption and user friendly design.
Haweya's phased introduction of digital identity services represents a significant step toward reducing branch dependence and improving operational efficiency in Egypt's banking sector. The initiative is designed to lower costs, accelerate customer verification, and support future digital banking growth. As adoption expands across banks and regulated financial companies, digital identity could become a core part of Egypt's financial infrastructure.