Mashreq Bank, a Dubai creditor, controlled by the Al Ghurair family, stated that it took over a stake in banking-as-a-service provider NymCard to underpin fintech in the United Arab Emirates cashless transactions increased owing to the COVID19 pandemic.
Mashreq Bank takes stake in NymCard
Mashreq Bank stated on Thursday that it is investing in NymCard via its venture fund that was fabricated to underpin the maturity of the financial technology ecosystem in the United Arab Emirates. The creditor, however, did not reveal the worth of the deal or the magnitude of the stake.
The Global Head of Retail Banking at Mashreq Bank, Fernando Morillo, stated that the United Arab Emirates witnessed vital advancement as a financial technology hub, both from an investment viewpoint and a mushrooming band of tech-savvy innovators, and this indicated no signs of dwindling.
Morillo further elucidated that the bank recognised the vital role of financial technology in maturing fiscal inclusion and digital economy and would strive to recognise prospects, invest, and underpin its partners to steer this growth and maturity.
NymCard delivers a portal for large and small financial technology firms to issue a payment card with its technology.
Omar Onsi, the chief executive and founder of NymCard, stated that the Mashreq Bank and NymCard collaboration would allow financial technology firms to release and scale swiftly within the UAE market.
With this new-fangled collaboration, NymCard has intensely inhibited the cost and time it would take for financial technologies to go live in the United Arab Emirates. In addition, its innovative payment cards underpin their business models and leverage the bank’s current and open API infrastructure.
Demand for digital payments and other financial technology services has matured during the pandemic as more people utilised online banking services to transfer money and recompense eCommerce transactions.
In the Middle East, the financial technology industry has been maturing. By 2022, over 800 financial technology firms functioning in various sectors like InsureTech, payments, and cyber security will elevate over USD 2 billion in venture capital financing to augment their growth, Mashreq Bank stated, quoting data from the Middle East Institute.
According to Statista, internationally, digital payments are estimated to mature to USD 8.26 trillion by 2024, from USD 4.4 trillion in 2020.
Mashreq Bank swung to a net profit of AED 1 billion (USD 0.27 billion) in 2021 as damages cut down and net interest income and Islamic funding income matured.
The bank stated that diminishing allowances during the period plummeted around 39% to AED 2.1 billion (USD 0.57 billion).