One of the largest banks in the UAE, First Abu Dhabi Bank (FAB) has decided to create a separate subsidiary to run its existing payments business after receiving the much anticipated regulatory approval from the Central Bank of the UAE (CBUAE).
The new entity which will spearhead the bank’s regional expansion ambitions will focus on direct acquiring, issuer processing and acquiring processing while combining FAB’s scale, expertise, network and technology platforms with the dynamic regional FinTech ecosystem to empower its customers to excel in the digital economy.
The subsidiary is expected to support traders, institutional clients and government entities through its customized payment solutions and value-added services to seamlessly integrate and optimize technology investments leading to a superior customer experience and operational cost efficiencies.
FAB will utilize the strategy to have a dedicated entity for its payments operation to expand into new regions and customer segments while accelerating its own digital transformation and improving its competitive position in the payments space to deliver long-term value to its shareholders
The move will strengthen FAB’s digital strategy by exploring new business models and fostering new opportunities to innovate and unlock the transformative power of technology and data to deliver the most secure, convenient and relevant financial services.
“The UAE is at the forefront of innovation in the financial services sector, underpinned by a vibrant mix of market dynamics, skilled talent and highly developed infrastructure. FAB is recognized as the fastest-growing payment service provider in the UAE and a significant enabler of the region’s digital economy. As the payments industry continues to move at a rapid pace, our ambition is to remain at the forefront, creating opportunities to collaborate with the right FinTechs and strategic partners to drive the payments ecosystem, deliver value and enable cost efficiencies.
“A fully owned subsidiary will open up the full potential of FAB’s payment business and commercialize our processing offering at scale, across a broad range of customers and partners. In addition to our involvement in the new digital bank being created by ADQ, this move represents another significant long-term strategic opportunity for FAB, forming a key part of our growth and transformation agenda, cementing our leadership position in the region’s rapidly expanding payments sector, and unlocking new possibilities for our bank, partners, customers and shareholders.”
The bank’s new payments entity is expected to be operational by early 2021. FAB will be providing specifics about the operation of the subsidiary over the coming months.