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Banking license puts profitability within reach for Neobanks

October 20, 2022

Banking license puts profitability within reach for Neobanks
If the Middle East was late to the neobank party, the United Arab Emirates, at least, is making strides toward the future of digital banking.

In an interview with Jayesh Patel, CEO at UAE-based neobank Wio Bank, he said that the new platform emerged out of “trying to understand what the needs of the next 10 years of the digital economy are.”

He told PYMNTS that Wio which he called “a technology platform with the heart of a bank” represents the next chapter in the evolution of banking: an operational model that combines digital banking, embedded finance and banking-as-a-service (BaaS).

The firm’s proposition is to offer digital-first accounts that take advantage of mobile apps to deliver innovative features to customers. But as well as offering user-facing services, Wio’s embedded finance solutions are about integrating with key digital players to “create a richer, better ecosystem for financial services.”

On the third pillar of Wio’s platform banking model, BaaS, Patel added that the intention is to offer the bank’s tools and capabilities to empower FinTechs in the region.

While digital banks in other parts of the world have often launched under the umbrella of a preexisting license, or with an electronic money license as opposed to a full banking license, Wio, which launched earlier this month, has been granted a full license from the Central Bank of the UAE.

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