IBAG: Provide Easy, Fast, and Secure Money Transfer
Updated 11/7/2023 8:00:00 AM
Arab Finance: IBAG is a financial services company that is committed to providing seamless, secure, and convenient solutions to its customers in Egypt. With a focus on contributing positively to the Egyptian economy, IBAG aims to be one of the very few trusted partners for financial services in the country. In an exclusive interview with Arab Finance, Dr. Moustapha Sarhank, the Executive Chairman of IBAG in Egypt, tells us about IBAG's services in Egypt. The interview covers various topics, such as the market response to IBAG's services, the benefits of digitalization, IBAG's market share, significant investments in Egypt, and collaboration with local businesses and organizations.
1-What inspired IBAG to expand its services in Egypt, and how has the market responded to your services so far?
IBAG has been offering its services in Egypt since becoming Western Union's first agent in the country in 1995. The primary inspiration behind this realization was to grab an opportunity that unequivocally enabled IBAG to better serve the Egyptian economy, known for the substantial diaspora population that IBAG is part of and the society it integrates with. By partnering with Western Union, IBAG was able to fulfill this need and provide a trusted channel for financial transactions, thus, ultimately contributing to the Egyptian economy's growth and further enhancing financial inclusion.
As for the market response, IBAG's services have been well received, considering its long-standing presence in the country and its impeccable humane service. The demand for international money transfer services in Egypt remains significant, and IBAG, as the first and the oldest Western Union agent in the country, has played a vital role in facilitating cross-border transactions.
Customers’ trust and satisfaction are proof of IBAG’s success. That said, IBAG's commitment to adhering to Western Union's global compliance standards did contribute to its lustrous, solid, and sustainable reputation in the market.
2-What are some of the most popular services IBAG-Western Union offers in Egypt, and how do they benefit customers?
IBAG-Western Union offers a range of popular services in Egypt designed to ensure that customers receive their transfers in the fastest, safest, and friendliest manner. Some of the most popular services include:
Extensive, well-spread network: IBAG has strategically positioned branches throughout Egypt. This extensive, geographically well-thought-out network ensures that customers can receive money quickly and easily while enjoying an extended working-hours schedule along with weekends and holidays.
Branch Collaboration: IBAG collaborates with prominent national Egyptian banks, such as the National Bank of Egypt (NBE) and Banque Misr (BM), by offering its services within their branches. This means that customers can conveniently access money transfer services through the trusted branches of these well-established banks.
Fast and easy transactions: With a network of 38 IBAG branches across Egypt, complemented by additional locations within the NBE and BM branches’ networks, customers can complete their transactions swiftly and without hassle.
Friendly and knowledgeable staff: IBAG prides itself on its customer service representatives and front-line agents who are ready to assist customers in a friendly and knowledgeable manner. This not only ensures that customers receive their money smoothly but also that they are being provided with a personalized and reassuring experience, especially for those new to the money transfer process.
Convenience, Reliability, Safety, and Security: IBAG emphasizes the importance of reliable, safe, and secure money transfers. By partnering with Western Union, customers can have full confidence in the security of their transactions. The combination of convenience and safety of a reliable money transfer process is a significant advantage, offering customers peace of mind throughout the process.
Digitalization of IBAG Services: In addition to the above services, IBAG is launching its first digital application in Q4 2023, which is a significant step toward enhancing customer convenience and accessibility. The ability for customers to receive their transactions through the application and, as such, choose their preferred method of receiving funds, be it in cash or directly to their bank accounts or wallets, is indeed a valuable feature.
3-While we are still on the subject, what are the benefits of the digitalization of IBAG services?
Here are some potential benefits and points to highlight regarding this new digital service:
Convenience: The IBAG application will offer customers the convenience of managing their transactions from the comfort of their smartphones. They can receive and control their funds without the need to visit a physical location.
Choice and Flexibility: Allowing customers to choose their preferred mode of receiving funds, whether in cash, bank accounts, or digital wallets, provides flexibility to cater to different financial needs and preferences. This adaptability is a customer-centric approach that can enhance satisfaction.
Speed: Digital transactions are often faster compared to traditional methods. Customers can expect quicker access to their funds, which can be crucial in urgent or time-sensitive situations.
4-What is IBAG’s market share in Egypt? And how do you plan to increase it in the future?
IBAG enjoys an impactful market share while positively contributing to the Egyptian economy. That said, its aim has always been customer-centricity while always staying focused on catering to its customers’ needs. Therefore, IBAG's constant objective is to expand its network of branches and locations to be constantly closer to its customer base, as well as ensure that customers can avail of its services digitally. It has also been evident that remittances play a pivotal role in bolstering the Egyptian economy; therefore, IBAG also seeks to expand the overall volume of remittances to Egypt by finding new ways to attract more segments and increase the remittance volume of the Egyptian diaspora working abroad.
5-What are some of the most significant investments that IBAG has made in Egypt? And how have they impacted the company's growth?
It always starts with people! Leading people is done in a humble, humane, and respectable manner. Employees’ feelings, aspirations, fears, and doubts are categorically observed. In the IBAG, the workforce is its pivotal and most important asset. IBAG’s workforce is unquestionably the most important capital. As such, one of the most substantial and pivotal investments IBAG has made in Egypt revolves around nurturing its business associates and its workforce.
IBAG's primary focus is on empowering everyone working in the company by enhancing their competencies through continuous training and development. IBAG views this enhancement of competencies as a cornerstone of its approach to business life. In fact, it is considered essential not only for the professional growth of the team members but also for IBAG’s continued success and contribution to the Egyptian economy.
IBAG aims at achieving the triple bottom line theory (people, profit, and planet). With a satisfied workforce, commitment is achieved, and with a committed workforce, IBAG achieves profit amelioration. Henceforth, this investment in its human resources has enabled IBAG to maintain a continuous competitive edge in the Egyptian marketplace while significantly contributing to the company’s ongoing success and ability to adapt to industry changes.
6-How does IBAG collaborate with local businesses and organizations in Egypt to improve its services and reach more customers?
IBAG has a dual form to achieve that. On one hand, IBAG established branch collaborations with prominent national Egyptian banks, including the National Bank of Egypt (NBE) and Banque Misr (BM). Through these partnerships, IBAG provides its money transfer services at select, strategically located branches of those well-established banks. This network expansion approach offers customers a convenient way to access money transfer services through familiar and reliable banking channels. It is worth noting that IBAG is working on further enhancing its reach by adding more branches to those banks.
On another front, IBAG continues to forge partnerships with local banks to entrench its delivered services and make them more approachable. This involves enabling customers to send money to any bank account or digital wallet, leveraging the infrastructure and networks of these local financial institutions. These collaborations help IBAG adapt to the evolving landscape of digital finance while offering a seamless and convenient experience to customers seeking to receive funds electronically.
7-Can you share with us the company’s financial performance in Egypt?
In 2023, IBAG is targeting to surpass the $2 billion threshold for remittances handed over to customers, amounting to a total of 3 million transactions this year.
8-How does IBAG ensure the security of its customers' transactions and data in Egypt? And what are your strategies to counter fraud and electronic fraud in Egypt?
IBAG prioritizes the security of its customers' transactions and data in Egypt, particularly in response to the rising threat of electronic fraud. These include secure collaborations with reputable banks, proactive digital security measures, and staff training. Our strategies to counter fraud and electronic fraud in Egypt are multi-faceted and designed to safeguard the integrity of our services. These strategies revolve around:
Advanced Security Protocols: This includes encryption technologies, secure servers, and authentication processes to ensure the confidentiality and integrity of the information.
Fraud Detection and Prevention: With our partnership with Western Union, we have implemented robust fraud detection and prevention mechanisms, including real-time transaction monitoring, anomaly detection, and anti-fraud algorithms that help identify and flag potentially fraudulent activities.
Customer Education: Educating our customers about fraud prevention is a key strategy. We guide recognizing and avoiding common fraud schemes.
Compliance with Regulations: IBAG maintains strict compliance with local and international financial regulations, ensuring that its services meet the highest standards of security and transparency.
Collaboration with Law Enforcement: In cases of suspected fraud, IBAG closely collaborates with local law enforcement agencies to investigate and address fraudulent activities, enhancing the effectiveness of its anti-fraud efforts.
Continuous Improvement: IBAG is committed to continuously improving its fraud prevention strategies. Regular assessments, audits, and updates to security systems and protocols help the company adapt to evolving threats constantly.
These combined efforts reaffirm IBAG's commitment to providing a secure and trustworthy platform for financial transactions in Egypt, aligning with the evolving landscape of digital finance while addressing the growing threat of electronic fraud.
9-How do you evaluate the banking sector in Egypt, especially with the emergence of digital banks?
The issuance of rules by the Central Bank of Egypt (CBE) in July 2023 pertains to the licensing, registration, monitoring, and supervision of digital banks. This regulatory development reaffirms the progressive and evolving nature of the Egyptian banking market and the dynamism of the Central Bank of Egypt. It signifies a commitment to embracing innovation and adapting to the changing financial landscape, where digital banks are surely poised to play a pivotal role in reshaping how financial services are accessed and delivered in Egypt. The CBE's forward-thinking approach to regulating and overseeing digital banks demonstrates the sector's readiness to meet the demands of a modern, tech-savvy consumer base while ensuring robust financial stability and security.
10-Finally, what are your plans for the future of IBAG in Egypt? And how do you see the company evolving in the coming years?
Our plans for the future of IBAG in Egypt revolve around several key objectives with an evolving vision:
Digital Transformation: IBAG is committed to furthering its digital transformation, particularly with the upcoming launch of the IBAG Application. This digital platform will serve as a cornerstone for providing customers with convenient, secure, and efficient financial services, expanding our reach to more customers across the country.
Enhanced Customer Experience: IBAG aims to continually enhance the customer experience by leveraging technology and innovation. This includes the introduction of new features and services that respond to evolving customer needs and preferences, be they at the company's branches or through its digital application.
Financial Inclusion: IBAG is committed to promoting financial inclusion by providing services to the underserved population. This aligns well with its mission to have a positive impact on the Egyptian economy while stressing its societal responsibility.
Security and compliance: IBAG will continue to invest in security measures and compliance standards to ensure that customer data and transactions remain secure. Adhering to regulatory requirements is paramount in this pursuit.
Market Monitoring: IBAG will closely monitor market dynamics, customer feedback, and emerging trends to immediately adapt and further refine its services and strategies as needed.
Customer-Centric Approach: IBAG's future will be continuously shaped by a strong customer-centric approach. The company is dedicated to always putting its customers first and consistently improving its services to meet the expectations of its client base while delivering impeccable service.
In the coming years, IBAG’s leadership, management, and entire workforce foresee the company continuing to be a dynamic and forward-thinking financial institution in Egypt, capitalizing on digital innovation, strategic collaborations, and an unwavering commitment to customer satisfaction. Our goal is to be one of the very few trusted partners for financial services, contributing positively to the Egyptian economy and providing customers with seamless, secure, and convenient financial solutions.
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