Hub71 teams up with two UAE banks

Friday 26 June 2020 11:08 CET | News

Hub71, a global tech ecosystem, has joined forces with Mashreq Bank and First Abu Dhabi Bank (FAB) to fix the problems faced by startups while opening a UAE bank account.

As part of this move, the company has released a whitepaper titled ‘Rethinking Banking for Startups’ which provides insights on the challenges startups face while opening an account. This whitepaper aims to help accelerate more partnerships with UAE banks and debut new banking solutions, especially for tech startups. It clarifies how startups can open a bank account in less than five days from an average of 63 days. The whitepaper highlighted that 30% of startups fail to open a bank account. As a result, these startups turn to foreign banks for conducting daily transactions.

The findings also unveiled that VC-funded startups have an intricate shareholding structure. Such startups take up to 105 days to open a local bank account. This delay in setting up a bank account is a direct consequence of strict documentation and lengthy KYC processes.

Hub71 along with FAB and Mashreq Bank have launched several pilots with its own community startups to optimise the account opening process. Additionally, Hub71 and its banking partners are working to launch banking products for UAE early-stage startups.

More: Link

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Keywords: Hub71, UAE, banks, banking, startups, Mashreq Bank, First Abu Dhabi Bank, FAB, whitepaper, Rethinking Banking for Startups, partnership, transactions , KYC
Categories: Banking & Fintech
Countries: United Arab Emirates
This article is part of category

Banking & Fintech