The UAE Central Bank has given preliminary permission for the licencing of Naqd Community Bank, a digital-only institution sponsored by Royal Strategic Partners.
The organisation will provide banking solutions, particularly for businesses engaged in "ecommerce and omni-channel environments," to "help the long-term growth of organisations participating in a variety of industries." Aside from healthcare, Naqd will target the UAE's entertainment, logistics, and retail industries.
“The bank employs cutting-edge digital banking technologies and innovations to provide services to various significant economy sectors in the UAE,” said Dr Hamad Al Ali, CEO of Royal Strategic Partners.
“Naqd is slated to promote the development of digital banking in the country by offering customers a unique, secure, and seamless banking experience. By doing so, we aim to support the strong regulatory frameworks being established and the 2023–26 strategy of UAE Central bank, which includes issuing digital currency, promoting digital transformation in the country’s financial services sector through the use of AI and big data solutions, developing more secure financial cloud infrastructure.”
Wio, Zand, and Al Maryah Community Bank have already received approval from the UAE's banking authorities to operate as neo-banks. These organisations are particularly interested in the SME market, which Naqd will also target.
In a release, it was stated that the bank would "better cater to the financial needs and requirements of the banked and unbanked populace, as well as micro-SMEs and startups in the UAE."
“Neo-banks. is transforming the banking system with its customer-centric approach and services,” said the statement. “The UAE’s digital agenda is completely aligned with the disruptive trends of neo-banks, as a result of which the nation's banking operations are being altered at a rather surprising rate.
“With more than 50 commercial banks operating in the UAE, neo-banking receives strong government support. By working together with the neo-banks, Naqd will contribute to advancing the UAE's banking sector to a completely digital world and encourage more new digital banks to launch its operations in the country.”