Dubai is a leading free zone for financial business.
Moreover, DIFC is a breakthrough in financial services in the Middle East and the Gulf Cooperation Council (GCC). Also, one of the most sophisticated financial infrastructures in the UAE is being developed by the rapidly growing financial technology sector – fintech – which has attracted many investors.
How do Fintech companies work?
The application of new and enhanced financial services technologies, such as education, e-commerce, and investment management, is known as FinTech. It is used to increase financial efficiency through technology and algorithms. According to the Global Fintech Market Study, by 2023, the market is expected to be valued at $305.7 billion.
How to start a Fintech Company in the UAE?
There are two options to start a fintech company in the UAE region.
ADGM
Our goal at RegLab is to create a personalized environment for companies in FinTech. FinTech companies and established financial institutions can benefit from the program, encouraging innovation within the UAE’s financial services industry.
The ADGM RegLab and its members can evaluate FinTech offers in a regulated setting with limited restrictions for the particular FinTech firm. Candidates must provide a single technical solution ready for testing that contributes only to the UAE’s financial sector. Applicants must also receive authorization and approval from the Financial Services Regulatory Authority (FSRA) in ADGM.
DIFC
In 2017, DIFC established FinTech Hive, a program that has already run three successful programs and has been an effective accelerator program in Dubai since it was established. This program has been a great success for DIFC so far. Acceleration includes a three-month mentoring program where finalists provide support and advice to each other throughout the first phase with stakeholders and industry professionals.
Over a broader range of topics, FinTech Hive encompasses FinTech, InsurTech, RegTech, and Islamic FinTech. Many incentives, license subsidies, and financing options are available through the DIFC ecosystem development, which ranks among the top 10 financial centers globally.
Process To Start Fintech Business in UAE
The most acceptable fintech applications are digital payments, digital lending, digital banking, digital investments, and consumer finance. You may use them to pay, save, invest, borrow, and create Money. These professionals are aware of customers’ potential problems and seek to resolve them.
Know The Regulations
It is very important to be familiar with the ins and outs of the fintech and banking industries since they are well regulated. Money laundering regulations, the Payment Card Industry Data Security Standard, Know Your Customer (KYC), and the EU’s General Data Protection Regulation (GDPR) are among the rules that apply to the financial industry. Fintech businesses are regulated by other public financial institutions depending on their capabilities.
There are nonetheless four major regulatory agencies in the financial industry (OCC):
- The FDIC
- The Commodity Futures Trading Commission (CFTC)
- The Bureau of Consumer Financial Protection (CFPB)
- The Currency Comptroller Office (CCO)
Know Your Competitors
Now that you know your specialty and location, you need to research the competition. There are already current solutions on the market, so your product should be unique and solve a specific problem. It is also possible that nothing new is introduced, but the quality of what it is is improved.
Mobile banking, for instance, can accomplish it more quickly and easily than other products, so your new product will stand out from the competition. You may also partner with firms that sell agriculture equipment, cosmetics, travel, and fitness equipment and provide them with online payments.
Build a Team
Finance and technology are two sides of fintech. Finance and technology make up fintech. While both components are important, you can build a unique Fintech app using your professional team of technological specialists. It would be best to look for a partner that is neither too costly nor too cheap within your budget.
You might choose to work with an app development business in a more affordable city with top-of-the-line technologists. Using these app developers from all over the country, the software or application will be produced at an affordable cost with the help of your on-site development team.
Choose Funding Options
You can receive Money in a variety of ways for your financial business. Many types of funding are available for startups, including crowdsourcing, bank loans, risk capital, angel investors, and competitions. Nevertheless, a demonstrable concept for a minimum viable product must be available. Using MVP funding, you can create your target market software or app for free. This is how many fintech companies started.
Build and Improve
The last stage of the process is developed since the first five steps have already been completed. It is, however, a continuous process that extends into the future instead of the previous phases.
The process encompasses startup, startup, processes, product improvements, adoption of new technologies and trends, and time-by-time change. To lower the risk of entering the saturated and highly competitive fintech industry, you should start small and improve your product.
Conclusion
A business owner must meet various requirements to receive a Dubai Fintech license to start operations as a Fintech company. For example, a Fintech firm needs to leverage innovation when generating its goods and services for a financial organization in Dubai.
This includes testing and executing with customers. Dubai’s financial markets meet current technological needs and are constantly taking steps forward. Fintech companies have seen significant growth in seeking high-quality services over the past few years.
