National Bank of Egypt Unlocks SME Financing Potential Through ”Alternative Data” Credit Scoring
Nader Saad, Executive Vice President for SMEs and Business Sector at the National Bank of Egypt (NBE), revealed a fundamental shift in creditworthiness assessment within the Egyptian banking sector. Speaking at a high-level panel on "Early Financing and Alternative Data," Saad explained that banks are increasingly leveraging non-traditional data points to augment traditional financial statements. This transition is designed to expand financial inclusion and enhance the precision of funding decisions for Micro, Small, and Medium Enterprises (MSMEs).
Saad noted that the Central Bank of Egypt’s (CBE) strategic initiatives over the past decade have successfully built a robust financing infrastructure, with the total SME loan portfolio across the banking system now exceeding EGP 600 billion. This vast historical and transactional database, accumulated over the last ten years, is now being utilized to refine credit models that previously relied on subjective estimations. By integrating operational and behavioral data, NBE and the wider sector are moving toward a more dynamic, data-driven approach to SME lending.