Abu Dhabi Global Market (ADGM) is looking for applications for the third cohort of its Regulatory Laboratory (Reglab).
The International Financial Centre in Abu Dhabi said it will be focusing on enhancing access to financial services for the small-medium enterprise (SME) sector.
With international advancements in FinTech holding ‘immense potentia’l to improve financing opportunities and unlock economic value for the SME sector, ADGM therefore encourages all FinTech and RegTech companies, in particular those with a SME focus, to apply and be part of its RegLab.
ADGM uses the examples of open APIs allowing FinTech startups to experiment with institutional data to better analyse and offer tailored credit facilities, machine-learning analytics to process traditional and alternative data for credit scoring purposes, innovative KYC solutions and cloud-based enterprise financial and risk management for SMEs.
Richard Teng, CEO of the Financial Services Regulatory Authority of ADGM, said: “It is encouraging that our RegLab today is the world’s 2nd most active FinTech sandbox globally. “Serving the SME sector is a key priority for ADGM since we began operations. Being at the forefront of innovation, it is clear to us that providing easier access to better data through powerful technologies such as Open APIs and artificial intelligence could fundamentally change the way the financial sector engages with this crucial part of the economy.
“Our focus on SMEs further underlines our commitment to the principles of leadership, innovation and nurturing the younger entrepreneurs and generation which is aligned with the spirit of the Year of Zayed.”
The ADGM RegLab is regulatory framework which provides a controlled environment for FinTech firms to develop and test innovative FinTech solutions. Successful applicants can test their product according to regulatory requirements tailored to contain the specific risks and impact of their particular test.
Accordng to ADGM, these safeguards will allow RegLab participants to explore and develop innovative solutions in a risk-appropriate and cost-effective environment. Participants will also have access to a digital sandbox service provided by Temenos, the software specialist for banking and finance. This enables them to integrate their solutions with banking data and functionality, and test the solutions for scalability and robustness.
Previous participants include: Now Money, which serves the UAE’s low-income migrant population, automated escrow service Titanium Escrow, India-based CapitaWorld, which automates the entire loan value chain, and US robo-advisory platform Finalytix.
Earlier this year, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), launched an electronic-Know-Your-Customer (e-KYC) utility project. The initiative is launched in close collaboration with a key team of the UAE’s largest financial institution, including the Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Ansari Exchange, Al Fardan Exchange, First Abu Dhabi Bank, UAE Exchange and ADGM.
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