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- Transfers via IBAG are expected to reach $3.5 billion by 2025.
- IBAG’s shareholder structure consists of Sarhank Group holding a 60% stake, the National Bank of Egypt 15%, Banque Misr 15% and Banque du Caire 10%.
- By the end of 2022, IBAG in partnership with Banque Misr, following the consent of the Central Bank of Egypt, launched its newest service, money exchange.
- IBAG intends to launch its application during the first quarter of 2023.
- IBAG, in conjunction with the Central Bank of Egypt and Western Union, is currently looking into the possibility of Egyptians abroad transferring money directly to their Egyptian bank accounts through the company.
Cairo: International Business Associates Group for Money Transfer Services, S.A.E. (IBAG) recorded a total of US$1.65 billion worth of transfers in 2022 with a 7% growth rate compared to 2021, reflecting the success of the company's latest transformation and modernization strategy.
IBAG, the official and oldest agent of Western Union in Egypt since 1995, revealed that the number of transfers from Egyptians abroad reached 2.8 million, disbursed to more than 800,000 clients. With such growth, along with its future plans, remittances via IBAG are expected to reach a value of $3.5 billion in 2025, doubling the company's share in the Egyptian market over the course of the next three years.
“2022 was a pivotal year for IBAG. As we restructured and continually modernized the company's business models to be more effective, dynamic, and efficient, IBAG put emphasis on the importance and strength of its digital platforms and its hybrid go-to-market approach. In as much as IBAG stresses on the criticality of continuously availing its services through its classical outlets - its own and through its partner banks – IBAG is focused on keeping pace with technological developments. This is realized by updating its digital capabilities, and investing in technological, secured and scalable infrastructure that allows it to be closer to its clients’ base by interconnecting with banks with an intention of facilitating expatriates’ transfers,” Said IBAG’s Executive Chairman, Dr. Moustapha Sarhank.
All in line with its strategic vision implementation of further enhancing and embracing financial inclusion in Egypt, Dr. Sarhank welcomed and hailed the participation of Banque du Caire in its equity structure notwithstanding the effect of the pandemic on its investment appetite.
"With Banque du Caire becoming a recent shareholder in the company, joining our partners the National Bank of Egypt and Banque Misr, IBAG is currently awaiting the approval of the Central Bank of Egypt for Banque du Caire to immediately provide IBAG’s service as a sub-agent in 2023. As a first phase, this would be offered through 25 branches and complemented by 75 branches to follow. This would bring the total number of Banque du Caire branches providing the service of IBAG/Western Union money transfer to 100 branches.” explained Mr. Abd Allah El Sada, IBAG’s Chief Executive Officer. He also pointed out that IBAG services are currently located in 106 branches of the National Bank of Egypt and Banque Misr with an IBAG representative employee available to handle data management and documents logistics.
It is worth noting that by the end of 2022, in partnership with Banque Misr and after obtaining the necessary approvals from the Central Bank of Egypt, IBAG launched money exchange services within 23 of its branches. A Banque Misr employee located in those strategically located IBAG branches provides the service to IBAG’s customers. IBAG is also working to increase the number of its service outlets and has agreed with Western Union to launch global campaigns in various countries to encourage transfers especially from Italy and AsiaPac countries.
And commenting on IBAG's strong turn towards digital transformation, Mr. Abd Allah El Sada said that “IBAG intends to launch its application during the first quarter of 2023, after obtaining the approval of the Central Bank of Egypt, with a purpose of facilitating the process of transferring money through the company's branches or through its employees’ presence located in banks. Equally, Mr. El Sada added that “the company is collaborating with Banque Misr to simplify the money transfer services and enabling it among all electronic wallets and bank accounts across the country.” Mr. El Sada stressed that enhancing the company's technological infrastructure is a vital pillar on IBAG's 2023 corporate growth agenda.
Mr. Abd Allah highlighted that the volume of transfers through IBAG increased during the Covid-19 pandemic period as a result of the closures period and suspension of travel, which prompted many people to turn to digital solutions. As such, Western Union cooperates with telecommunications companies in Gulf countries, allowing customers to transfer money via mobile phones without the need to be physically present in branches.
And in line with this mobile and digital technology adoption, IBAG, along with the Central Bank of Egypt and Western Union, are currently looking into the possibility of Egyptians abroad transferring money to Egyptian banks through the company, with the aim of making remittances easier for customers while stressing financial inclusion.
It is worth mentioning that IBAG’s shareholder structure consists of Sarhank Group holding 60% stake in the company while the National Bank of Egypt 15%, Banque Misr 15% and Banque du Caire 10%. Established 28 years ago, IBAG provides its services through 38 IBAG branches, as well as 106 branches in National Bank of Egypt and Banque Misr.
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About IBAG:
International Business Associates Group for Money Transfer Services, S.A.E. (IBAG) was established in 1995, and it is the first and largest agent of Western Union in Egypt.
IBAG has been keen since its inception, to ensure that its business has an effective impact to serve the Egyptian economy through money transfer services and specialized remittance solutions. IBAG provides a reliable, fast, and secure network of services through 38 strategically located branches throughout Egypt, in addition to 106 branches between the National Bank of Egypt and Banque Misr.
In 2021, IBAG provided its premium services to more than 2 million customers, through 2.7 million transfers, valued $1.6 billion.
The Board of Directors of International Business Associates Group for Money Transfer Services, S.A.E. (IBAG) is considered a fundamental pillar in the company’s competitiveness and go-to-market approach under the leadership of Dr. Moustapha Sarhank IBAG’s Executive Chairman, and Mr. Abd Allah El Sada the Chief Executive Officer, armed and complemented with a best-of-breed executive body renowned with its deep inter-disciplinary knowledge and blessed with a long and diversified experience in the financial sector.