ADGM, Sunline collaborate on development of FinTech solutions in Digital Lab to support SME sector

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ADGM, Sunline collaborate on development of FinTech solutions in Digital Lab to support SME sector

11 Aug 2020

The Financial Services Regulatory Authority, FSRA, of the Abu Dhabi Global Market ADGM, and Sunline Holding, HK, Ltd, 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 and the Belt-and-Road corridor, including developing digital financing and loans solutions for the 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 sector. 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 recognised 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 digital solutions that actively monitor the cash, inventory and payments of the SME, enabling more alternative financing options solutions such as receivables in finance and supply chain finance that can help release cash tied up in the sales cycle.

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."

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."

Source: WAM