The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) is now issuing digital banking licences to local and global applicants to establish banks in its International Financial Centre based in Abu Dhabi.

ADGM stated that it will provide an ideal jurisdiction and environment for the digital bank model.

Digital banks in ADGM will add significant value to the SMEs, corporate and wholesale sectors, as well as further contribute to the development of the overall financial ecosystem, added the FSRA.

Richard Teng, the Chief Executive Officer, FSRA of ADGM, said, “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.”

The regulator said that the digital banking licence will require a base capital requirement of $10 million.

Digital bank accepts deposits and carries on other related financial services activities through online, digital or electronic means rather than through the conventional physical interaction with bank customer services providers.

Source Islamic Business&Finance