Fintech Digest: UAE, Singapore Pilot First-Of-Its-Kind Cross-Border Trade Finance Project14. November 2021
The Monetary Authority of Singapore (MAS) and Abu Dhabi’s Financial Services Regulatory Authority (FSRA) have completed a first-of-its-kind digital cross-border trade finance document transfer (Fintech Futures).
This makes the initiative the world’s first cross-border digital trade financing pilot, a statement said.
A ‘TradeTrust’ framework developed by Infocomm Media Development Authority (IMDA) in Singapore facilitated the pilot transfer between MAS and Abu Dhabi Global Market’s (ADGM) regulatory body FSRA.
DBS Bank, Emirates NBD and Standard Chartered also worked on the project as commercial partners.
Legally, the pilot was backed by a UN affiliate-developed Model Law on Electronic Transferable Records (MLETR). Both jurisdictions have adopted the model law, which legally recognises electronic transferable records locally and between borders.
Why it matters: Trade financing supports nearly 50% of international trade in some form, responsible for US$9 trillion worth of trade. Of this, global factoring and receivables finance is responsible for US$3 trillion worth of international trade.
However, cross-border trade finance, and trade-based money laundering and fraud, remain key issues for the industry to contend with, the statement pointed out. In this context, digitisation can help authenticate cross-border trade finance more securely and cost-effectively. The TradeTrust platform, for instance, is interoperable, and allows exchange of documents in real time, while providing digital proof of authenticity, origin and ownership.
MEA Fintech News Highlights
South African BaaS platform Jumo raises US$120 million for expansion in Africa and Pakistan (Fintech News Africa).
Ecobank Group announces finalists of its fourth 2021 Ecobank Fintech Challenge (The Guardian Nigeria).
Pan-African digital payments gateway MFS Africa fetches US$100 million in its Series C fundraise (Fintech News Africa).
UAE’s Postpay partners with The Commercial Bank of Dubai (CBD), Mastercard and tutuka to launch “Shop Anywhere” BNPL in the Middle East (The Fintech Times).
Abu Dhabi Islamic Bank and DIFC FinTech Hive host a ‘speed meeting’ session for fintech startups from the UAE, Egypt, the US, the UK, the Czech Republic and Singapore (TradeArabia).
Flutterwave acquires content management company Disha in line with “endless possibilities” vision (TechCabal).
Pakistan-based cash flow management platform Udhaar Book secures US$6 million seed funding to digitise credit in retail shops (Fintech News Middle East).
UAE’s Sarwa officially launches zero commission and transfer fee trading platform Sarwa Trade (Fintech News Middle East).
UAE-based AI powered digital wealth manager FinaMaze launches “smartfolios” for prime retail clients (The National).
First Abu Dhabi Bank’s consumer services arm Dubai First partners with Mastercard over an experiential consumer engagement platform (The Fintech Times).
The Central Bank of the UAE (CBUAE) and Indonesian central bank Bank Indonesia sign MoU over digital payment and financial services, cross-border payment systems and AML frameworks (company announcement).
Investor consortium led by Abu Dhabi’s ARV Investments invests US$25 million in Singapore-based fintech TSLC (Gulf News).
UAE announces Entrepreneurial Nation initiative aimed at building 20 unicorns in the country by 2031 (The National).
Bahrain-based crypto exchange CoinMENA secures US$9.5 million seed funding (Fintech News Middle East).
Saudi Arabia fintech company Geidea announces partnership with channels by stc (the distribution arm of Saudi Telecom Company) for integrated suite of retail solutions (company announcement).
Qatar Islamic Bank launches Video Banking service for the first time in Qatar through its QIB Mobile App (Gulf Times).
Switzerland-based BNPL provider ZoodPay raises US$38 million Series B for Iraq expansion (The Paypers).
API fintech startup Stitch launches in Nigeria with Stitch Payments (TechCabal).
South African fintech Finclusion to expand into Mozambique and Uganda by Q2 next year (The Africa Report).
Egypt’s Paymob partners with Mastercard to launch Tap-on-phone digital payment (Arab News).
“Especially in this side of the world, fintech startup founders in the Middle East should be credited for laying the groundwork for a fintech boom. In the backdrop of a very early startup ecosystem, and with most regulators in the region still feeling the ground, these individuals have built companies that have ushered in an era of steep growth and global visibility…”
Find out who the top fintech startup founders in the Middle East are here.
“The promise of crypto in Africa is to usher in financial empowerment and liberty by circumventing the traditional financial system. Local populations are left with little choice apart from buying in, despite the high inherent risks of a crypto-driven economy…”
Is crypto the next big thing in Africa? Find out here.
Subscribe to our Middle East and Africa newsletters to continue receiving the top MEA fintech news in your inbox.
This article was originally published on Fintech News Africa.
Featured image: edited from Unsplash
No Comments so farJump into a conversation
No Comments Yet!You can be the one to start a conversation.