Banking in Egypt

Seems there are banks everywhere around where I live in Maadi (Maa-di). You usually don't have to see the sign just the maze of cars blocking most of the streets surrounding to know where a bank is located.



When I first came to Egypt I was with an American oil company with account in USA. And I had internet banking. The banks here had never heard of "Computer Banking" and seemed a revolting idea. I talk to Egyptian employees of mine and others and consensus was it was such a dangerous idea. Well where was I " Dinosaurs age"

So to continue in early days - to get cash I would have a letter from the employer guaranteeing my personal check. So I would go to bank and stand in long lines as a "free for all" queuing system, then bureaucratic system would kick in as seems everyone in bank including tea boy had to approve the letter and check.



Later I set up an account having to show passports, baby pictures etc, give them passport sized photos, and all kind or paperwork and with about 3 signatures per page. But no internet banking so the long queues persisted. This was also time before ATM's.

At this time there was a vibrant black market so dollars were at a premium. Egyptians could not readily get hard currency so deals were made all the time everywhere. This black market has now disappeared as local currency was floated, and Egyptians can obtain currencies as they want at the banks. For us expats, paid in dollars, this was a hurt as without black market it increased our cost of living by about 30%. But - it is better the way it is now and all will agree - I think?

Later this bank invented "take a number system" which as one can tell was at least 10 years after public institutions were using this system elsewhere. But no internet access to account. They did attempt a phone link system but it never worked and low an behold an ATM popped up outside the bank entrance.



Another hassle was waiting in line while the fellow in front of you was depositing, or withdrawing a suitcase full of cash bills which the bank teller would look over and reject some notes then count all the remainder. Was a time consuming wait. This still happens.



Bit later I found HSBC, which had newly established in Egypt, and did have a internet access system. So I was quickly there to set up accounts. One quirk was they required a reference from a current client of HSBC. I asked how did the very first person set up and account. No answer! So had to return with my buddy and all was then copasetic. And low and behold was set up the internet access and it worked! Now I was happy camper.



Transferring funds to other banks, by internet was still a hassle, as you could make the form out on internet, but transfer they would not action until you received a phone call and after answering the 20 questions to verify it was you who did this dastardly deed, they would process the transfer, but then only to find the charges were deducted from the receivers account - my payment was then short! Step in hassle number 2. Then had to go to bank and fill in transfer form to insure charges for remaining amount was charged to my account. Well finally in last few months, they have upgraded security on net and you can choose who pays charges, and no phone calls so this problem has gone away.



ATM cards and machines are now prevalent, so getting cash is much easier except when they run out of cash or when computer systems are down, becoming less of a problem lately.



Credit cards have surfaced and can be used a larger local stores. At restaurants, check first. Egypt is still essentially a cash society. Whether or not your credit card is valid outside Egypt is a point one needs to check before traveling.



If one needs to visit bank to get large sums of cash, or just do business arrive between 9 am and 10 am. Egyptian society wakes up around 10 am and can be quite crowded till about 3:30 pm. HSBC is open till 5 pm so if necessary try to 4:30 visit to miss large crowds.



So in summary, at this time it is not so difficult to set up account in various currencies, plus checking account. Oh - by the way remind them you want to order checks for your checking account as that does not happen automatically. Dumb me, after 3 weeks when I opened my accounts I asked where checks where and was told bluntly I did not order any. I said what good is a checking account without checks – any way I lost the argument and order the check book. Note to teach my English friends - "check" can be interpreted as "Cheque".