Walid Hassouna, CEO of Valu, emphasized that competition in the Egyptian consumer finance market is a positive force and a key driver for the sector's development. He pointed out that customers are the primary beneficiaries of this intense competition among companies and financial institutions, as they get access to more diverse and efficient services and products. Hassouna explained that while the market has many companies operating in consumer finance, the real competition is concentrated among about 6 to 8 companies that hold the largest market share. The remaining share is distributed among several other companies with limited stakes. He added that only about 6 to 7 companies control around 80% of the consumer finance market volume, with the rest of the companies sharing the remaining percentage. This clearly shows the intense competition among the sector's main players. He also noted that competition between consumer finance companies and banks is a healthy trend. It helps improve market efficiency and encourages institutions to constantly develop their services. He highlighted that any economic or regulatory changes could directly impact companies in the sector, pushing them to seek innovative solutions to maintain growth rates and boost their competitiveness. Hassouna affirmed that strong competition forces companies to develop new products and services that meet changing customer needs. He clarified that Valu plans to launch four new products this year as part of its strategy to enhance its competitiveness, increase its market share, and offer more diverse financing solutions to customers. Regarding the future of digital banks, Valu's CEO explained that obtaining a digital banking license has become a goal for most companies in the consumer finance sector. He sees it as an important tool that helps enhance the sustainability of financing operations and expand companies' available liquidity sources. He pointed out that pursuing a digital banking license is a legitimate right for any consumer finance company looking to develop its business model and expand its financial services. However, he clarified that Valu currently does not have a direct plan to transform into a digital bank, but it aims to reach that stage in the future when the right conditions and resources are available. He added that one of the most crucial aspects of becoming a digital bank is the ability to leverage deposits and use them effectively to support financing activities. This ensures sustainable funding, expands the customer base, and promotes long-term growth.
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