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.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
The Written World: How Literature Shaped History
Martin Puchner
Granta
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
More on animal trafficking
Russia's Muslim Heartlands
Dominic Rubin, Oxford
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
