ADGM to issue digital banking licences to banks having a base capital of $10 million
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has decided to issue digital banking licences to global and local applicants to develop an advanced banking culture in its International Financial Centre based in Abu Dhabi.
According to Zawya, AGDM has declared that it will provide an ideal environment and jurisdiction for a full-functioning digital banking model.
It is expected that the digital banks licenced by AGDM will add enormous value to the SMEs, corporate and wholesale sectors, contributing to the progress of the overall financial ecosystem. FSRA is very hopeful of this initiative and believes the project aligns with both long term and short term goals the emirate’s government has taken for economic and financial progress.
The Chief Executive Officer of FSRA of ADGM, Richard Teng, “Digital banks can address the needs of many segments that are currently underserved by conventional institutions, such as the credit gap faced by small and medium enterprises.”
According to the regulator, a base capital of $10 million will be required for being eligible for the digital banking licence.
Digital banks have brought almost all the available services provided by physical banks in the online sphere, making banking more accessible for the customers.