By Lisa Barrington
DUBAI (Reuters) – The primary impartial digital banking platform within the United Arab Emirates launched on Sunday, a neobank hoping to develop into a pacesetter within the Center East, Africa and South Asia.
Dubai-based YAP doesn’t have a banking licence itself however has partnered with RAK Financial institution which supplies worldwide checking account numbers for YAP customers and secures their funds underneath its personal banking licence.
YAP, like different neobanks which would not have bodily branches, doesn’t provide conventional banking companies like loans and mortgages, however presents spending and budgeting analytics, peer-to-peer funds and remittances companies and invoice funds.
YAP is within the means of partnering with banks in different international locations, head of product Katral-Nada Hassan stated, together with a financial institution in Saudi, in Pakistan and in Ghana.
International leaders in digital banking, akin to Revolut, one of many world’s fastest-growing apps, would not have a UAE presence.
Some UAE banks have in recent times launched their very own digital banking choices focused at digitally-savvy and youthful customers, akin to LIV by Emirates NBD and Mashreq Neo by Mashreq Financial institution.
Abu Dhabi state-owned holding firm ADQ final yr stated it plans to arrange an as-yet unnamed neobank utilizing a banking licence of the nation’s largest lender, First Abu Dhabi Financial institution (FAB).
“The fintech revolution has develop into extremely popular in different elements of the world and we noticed a spot and distinctive want for this service within the Center East,” stated YAP CEO and founder Marwan Hachem
Hassan stated there are challenges for fintechs seeking to increase to the UAE.
“There are loads of fintechs proper now partnering with banks, however that requires loads of dialogue, relationship constructing … It’s not a straightforward factor to do,” she stated, including YAP’s founders had an present relationship with RAK Financial institution.
YAP is at seed funding stage, funded by founders, a personal fairness agency and personal buyers, Hassan stated, including that greater than 20,000 clients have pre-registered and accounts will step by step go reside in coming weeks.
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