New subsidiary to go on live by early 2021
This follows the recent regulatory approval received from the Central Bank of the UAE.
The bank said FAB’s new payments subsidiary is on track to go live in early 2021 and further updates will be provided over the coming months.
Focused on direct acquiring, issuer processing and acquiring processing, the payments business will connect FAB’s scale, expertise, network and technology platforms with the region’s dynamic FinTech ecosystem to enable customers to excel in the digital economy.
A statement from FAB, one of the world’s largest and safest financial institutions, said the newly formed subsidiary will help government, merchant and institutional clients grow their core businesses by providing customised payment solutions and value-added services.
The carve-out is designed to unlock the growth potential from new geographies and customer segments, accelerating FAB’s digital transformation, enhancing its competitive position in the payments space and delivering long-term value to shareholders.
It will support 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.
André Sayegh (seen in the picture), Group Chief Executive Officer (CEO) of FAB, observed that 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 recognised 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,” he added.
Sayegh said a fully owned subsidiary will open up the full potential of FAB’s payment business and commercialise its processing offering at scale, across a broad range of customers and partners.