Sunline to help Abu Dhabi FinTechs connect with banks
The Abu Dhabi Global Market and China’s Sunline Holding signed a preliminary agreement to support FinTech companies in the financial free zone.
The ADGM’s Financial Services Regulatory Authority and the Chinese banking software company will participate in joint projects to develop and apply artificial intelligence, big data analytics and other emerging technology.
Sunline will also provide a FinTech development suite within the ADGM Digital Lab, an online platform where FinTech companies and financial institutions can create and test products to address challenges, with the regulator exercising direct oversight, the ADGM said.
“Sunline will create a digital platform on ADGM’s digital sandbox to connect banks with FinTech companies,” Matthew Chen, chief executive of Sunline Overseas Business, said.
“Empowered with the latest technologies on an agile digital platform, banks can push out more flexible loans to SMEs, especially those going through hardship under the current pandemic situation via this platform.”
Abu Dhabi’s financial free zone has been working to attract FinTech companies as part of the emirate’s focus on developing advanced technology sectors to diversify its economy from oil.
Sunline Holding has the largest installed base for core and digital banking systems in China, serving more than 700 finance customers around the world.
Through the Digital Lab, banks can create specialised end-to-end workflows for loan products tailored to meet the needs of SMEs.
For example, a bank can build a digital loan package that is structured on changing market conditions and an SME’s evolving credit profile and liquidity needs.
It can also create digital solutions that actively monitor the cash, physical stocks and payments of an SME, enabling alternative financing options such as receivables finance and supply chain finance that can help release cash that is tied up within the sales cycle.
Counting on Sunline’s experience in China, Hong Kong and South-East Asia, as well as its growing presence in the Middle East, the ADGM said its collaboration with the Chinese company will help to “build connectivity and partnerships among the FinTech ecosystems in [the] Mena [region], Asia and along the Belt and Road corridor”.
“With digital transformation accelerating, the ADGM seeks to support the growth and development of a vibrant FinTech and innovation ecosystem through collaboration with industry, community and regulatory stakeholders,” Richard Teng, chief executive of the Financial Services Regulatory Authority said.