DUBAI (Reuters) – The first independent digital banking platform in the United Arab Emirates was launched on Sunday, neobank hopes to become a leader in the Middle East, Africa and South Asia.
YAP does not have a banking license based in Dubai but has partnered with RAK Bank which provides international bank account numbers to YAP users and obtains their assets under its own banking license.
YAP, like other neobanks that do not have physical branches, does not offer traditional banking services such as loans and mortgages, but does offer expenditure and budget analysis, peer payments and transfer and bill payment services.
YAP is currently partnering with banks in other countries, said product leader Katral-Nada Hassan, including a bank in Saudi, Pakistan and Ghana.
Global leaders do not have a global presence in digital banking, such as Revolut, one of the fastest growing apps in the world.
In recent years some UAE banks have launched their own digital banking offerings aimed at digital and younger consumers, such as LIV by Emirates NBD and Mashreq Neo by Mashreq Bank.
State-owned company Abu Dhabi ADQ said last year that it plans to set up an anonymous neobank using the banking license of the country’s largest lender, First Abu Dhabi Bank (FAB).
“The fintech revolution has proved popular in other parts of the world and we have seen a particular gap and need for this service in the Middle East,” said YAP CEO and founder Marwan Hachem
Hassan said there are challenges for fintechs looking to expand into the UAE.
“There are a lot of fintechs looking at partnering with banks at the moment, but that requires a lot of discussion, building relationships … It’s not an easy thing to do,” she said. adds that the founders of YAP had an established relationship with RAK. Banca.
YAP is at the seed funding stage, funded by founders, a private equity firm and private investors, Hassan said, adding that more than 20,000 customers have pre-registered and accounts go live gradually in the coming weeks.
Reciting with Lisa Barrington; Edited by Elaine Hardcastle