China's Sunline signs agreement to support development of Abu Dhabi FinTech companies

Banking software giant will operate a FinTech development suite in ADGM's Digital Lab and work on data projects with the free zone's regulator

Abu Dhabi Global Markets. A $5bn bond issuance finalised on Wednesday was 4.8 times' oversubscribed. Alamy

The Abu Dhabi Global Market (ADGM) and China's Sunline Holding signed a preliminary agreement to support financial technology (FinTech) companies in the financial free zone.

ADGM's Financial Services Regulatory Authority (FRSA) and the Chinese banking software giant will participate in joint projects for developing and applying technologies such as artificial intelligence, big data analytics, and other emerging technologies. Sunline will also provide a FinTech development suite in the ADGM Digital Lab, an online platform where FinTechs and financial institutions can create and test products to address challenges, with direct oversight by the regulator, ADGM said.

"Sunline will create a digital platform on ADGM's digital sandbox to connect banks with FinTech companies," Matthew Chen, chief executive of Sunline Overseas Business, said. "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."

Abu Dhabi's financial free zone has been working to attract FinTech companies as part of the emirate's focus on developing advanced technology sectors to diversify its economy from oil.

Banking software and technology services company Sunline has the largest installed base for core and digital banking systems in China, serving more than 700 finance customers globally.

Through the Digital Lab, banks can create specialised end-to-end workflows for loan products tailored to the needs of the SME.

For example, a bank can build a digital loan package that is structured based on changing market conditions and the SME's evolving credit profile and liquidity needs. It can also build in digital solutions that actively monitor the cash, inventory and payments of an SME, enabling more alternative financing options such as receivables finance and supply chain finance that can help release cash tied up in the sales cycle.

Leveraging Sunline’s experience 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," according to ADGM.

"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," Richard Teng, chief executive of the FSRA said.