Is This the Future of Embedded Finance for UAE SMEs?

Hey! I just learned about an exciting partnership between Magnati, a leading payment solutions provider, and RAKBANK, which is known as the UAE's largest bank for SMEs. Together, they’ve launched an innovative merchant financing platform aimed at helping SMEs access credit more easily.

Here’s how it works: SMEs can now utilize their real-time Point of Sale transaction data to get credit facilities through RAKBANK. This data is translated into decision metrics, which makes underwriting decisions more efficient. The platform doesn’t just offer loans; it also includes options like invoice financing, equipment financing, and even insurance, making it a comprehensive solution for SMEs to meet their financial needs.

What’s really cool is that merchants using Magnati’s payment solutions will find the loan application process much more streamlined. Repayments are automatically deducted from their daily payouts, which helps them manage cash flow better. RAKBANK brings its expertise in SME lending to the table, using the real-time financial insights from the platform to quickly and accurately underwrite loans. This means SMEs can access credit faster, which supports their long-term growth and sustainability.

Ramana Kumar, the CEO of Magnati, expressed excitement about this collaboration, highlighting how it will provide embedded finance solutions for their SME merchants. He mentioned that the partnership aims to enhance the financial ecosystem for SMEs in the UAE and help them succeed.

Dhiraj Kunwar, RAKBANK’s Managing Director of Business Banking, also emphasised their commitment to offering innovative financial solutions tailored for businesses. He noted that leveraging real-time data allows them to make faster, more informed lending decisions, ultimately helping businesses unlock new opportunities for growth.

Overall, this partnership is a significant step toward supporting the vibrant entrepreneurial sector in the UAE!