Fintech Galaxy buys open banking firm underlying
Fintech Galaxy has acquired Egyptian open banking platform Underlie for an undisclosed sum.
The Dubai-based financial technology firm announced the acquisition in a press release on Thursday (December 22), saying that “the deal will help put [its] Open Finance and Open Banking are in full swing throughout the region, developing and launching new digital solutions and pushing financial inclusion forward.”
To varying degrees, many countries in the Middle East and North Africa (MENA) are adopting open banking, which Fintech Galaxy has made a key pillar of its growth strategy in the region.
While Bahrain is known as MENA’s open banking leader, thanks to its early adoption of legislation in the style of Europe’s PSD2, other countries in the region have followed suit.
Last October, the Central Bank of Egypt (CBE) adopted new regulations governing the country’s Instant Payment Network (IPN).
Reflecting the growing importance of mobile payments in the Egyptian economy, the new regulations allow approved mobile apps to offer payment services and instant transfers.
“Through the new network, customers will be able to complete transfers within seconds, on weekdays and during official holidays, using various electronic payment tools issued by Egyptian banks,” CBE Deputy Governor Rami Aboul Naga said in the statement at the time.
With the IPN regulation in place, a growing number of Egyptian banks have published open banking application programming interfaces (APIs), allowing companies like Underlie to weave together the country’s nascent open banking ecosystem.
Commenting on the latest acquisition, Riyadh Al Zamil, Chairman of Fintech Galaxy’s Board of Directors and Investors, said that “Underlie’s expertise in building Open Banking APIs and knowledge of the local market will help us speed up our penetration in Egypt in the market.”
Fintech Galaxy Founder and CEO Mirna Sleiman added that “the acquisition of Underlie anchors our Open Banking/Open Finance efforts and enables us to successfully deliver enhanced, seamless and enjoyable financial experiences, expanding and consolidating our position on across the MENA markets.”
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