The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) and Sunline Holding (HK) Ltd (Sunline) signed a Memorandum of Understanding (MOU) to promote the development of ADGM’s FinTech ecosystem that will support and connect businesses and markets in the Middle East and North Africa (MENA) and the Belt-and-Road corridor, including developing digital financing and loans solutions for SMEs to support and grow their operations in a post-pandemic environment.
As one of the leading banking software and technology services companies in the world, Sunline specialises in providing best-in-class technological solutions for the financial industry. It has the largest installed base for both core and digital banking systems in China, serving more than 700 banking and finance customers worldwide and helping them transform digitally over the past decade. Pioneering many ‘firsts’ in financial innovations, Sunline is recognized by analysts and business magazines including IDC, Forrester and Forbes.
As part of the MOU, Sunline will provide a FinTech development suite in the ADGM Digital Lab, an online marketplace where FinTechs and financial institutions (FIs) can co-create and test solutions to address challenges with direct oversight and engagement by the regulator. Harnessing the tools and collaborating with ecosystem participants in the Digital Lab, banks can create specialised end-to-end workflows for loan products tailored to the needs of the SME.
For instance, a bank can build a digital loan package that is dynamically structured based on changing market conditions as well as evolving credit profile and liquidity needs of the SME. The bank may also work with ecosystem partners to build in digital solutions that actively monitor the cash, inventory and payments of the SME, enabling more alternative financing options solutions such as receivables finance and supply chain finance that can help release cash tied up in the sales cycle.
Leveraging Sunline’s experience and track record as a leading technology service provider in China, Hong Kong and South East Asia, as well as its growing presence in the Middle East, ADGM’s collaboration with Sunline will help to build connectivity and partnerships among the FinTech ecosystems in MENA, Asia and along the Belt and Road corridor.
Richard Teng, CEO of the FSRA said: “With digital transformation accelerating, ADGM seeks to support the growth and development of a vibrant FinTech and innovation ecosystem through collaboration with industry, community and regulatory stakeholders. The Digital Lab consolidates the synergistic benefit of an ecosystem, fostering holistic solutions that are more effective and sustainable.
We look forward to the cooperation between ADGM and Sunline in the development of multilateral technology platforms that support our FinTech ecosystem, as well as foster greater trade and growth opportunities among the SME sector across MENA, China and countries along the Belt and Road.”
Matthew Chen, CEO of Sunline Overseas Business said: “Sunline will create a digital platform on ADGM's digital sandbox to connect banks with FinTech companies. 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. The seamless connections between banks and FinTech companies on this digital platform will create a digital marketplace that foster deeper collaborations amongst this trade corridor.”
Under the MoU, FSRA and Sunline will also mutually support FinTech participants and ecosystem enablers in their respective community networks in leveraging Abu Dhabi as a platform to develop, test and launch innovative FinTech products, services and business solutions in the MENA markets and Belt and Road corridor. Both parties will participate in joint projects on the development and application of technologies such as artificial intelligence, big data analytics, and other emergent technologies.