ADGM launches Digital Marketplace to test feasibility of future products
06 April, 2021
Abu Dhabi Global Market has introduced an online community where entities such as banks, investors, financial technology companies and regulators can come together to test the feasibility of products and services before their launch in the market.
The initiative, called Digital Marketplace, is part of ADGM’s Digital Lab and went live on Monday, the emirate's financial free zone said.
“In the GCC region, the digital transformation agenda has steadily become an important focus of many financial institutions and banks. However, when it comes to actual implementation, the banks are faced with a few challenges,” Wai Lum, senior executive director of capital markets at the ADGM Financial Services Regulatory Authority, told The National.
“There is a lack of a safe and conducive environment for the banks to test out their innovation before procurement. There were instances when the banks realised after going through the procurement process that the technology is not up to their requirements. So we decided to invest in a digital laboratory or a digital sandbox,” he added.
Regional FinTech companies have grown in prominence as the pandemic led to an increased demand for online payments.
The number of FinTech companies is set to grow to 1,845 by 2022, up 230 per cent on the 559 companies in 2015, according to a MENA Research Partners report.
Within hours of its official launch, there were 37 stakeholders on the Digital Marketplace. These included regulators, banks, venture capitalists, FinTechs and technology firms, ADGM said. The Digital Marketplace also saw a listing of 17 APIs or products on the platform.
An API is an interface that allows other software systems to work together.
“Our USP is that we involve regulators in the development process. When FinTechs and financial institutions test their products on the platform, we are able to provide regulatory inputs from the day one to ensure they are compliant by design,” Mr Wai said.
“It is a vibrant marketplace for interactions ... banks can source for FinTechs … while FinTechs can look for potential investors.”
The fact that the platform is digital means ADGM can attract companies and regulators from across the world, Mr Wai said.
For example, a start-up from Singapore to London or from Abu Dhabi to New York can come to the platform and collaborate with banks in this part of the world, he added.
“Digital Marketplace saw a very positive start and we can move from strength to strength.”
Source: www.thenationalnews.com
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