However, the sector is hindered by the government's ownership of the four public sector banks that control almost 65 per cent of the industry. Yet the employees' compensation system in the four public sector banks, particularly at entry level jobs, does not allow public sector banks to attract the best qualified candidates. High quality school graduates are attracted to private sector banks and investment banks that pay multiples of what they would earn in a public sector bank. Twenty-five years ago this was not the case since anyone who wanted to work in the financial industry had no where to go other than the public sector banks. However, today the competitive landscape is completely different.
Banking is all about human capital.
The best financial institutions are the ones which can hire and retain the best talents. In my opinion the inability to hire the best candidates is not only hindering the four public sector banks but the development of the entire banking system, since the four banks control the bulk of financial services in Egypt. The opportunity for growth in the financial sector is large. Egypt is one of the most underbanked societies. It has the lowest banking density among its Mediterranean peers.