Money Protects achieves milestone with DFSA in principal approval and DIFC license

This accomplishment is a testament to Money Protects' commitment to integrating financial innovation and technology

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Mirza Ashraf Beg, founder and CEO, Money Protects.
Mirza Ashraf Beg, founder and CEO, Money Protects.

Published: Tue 12 Dec 2023, 3:26 PM

Last updated: Thu 14 Dec 2023, 5:51 PM

In a significant development for the financial sector, Money Protects Capital Limited has achieved a crucial milestone by securing in principal approval from the Dubai Financial Services Authority (DFSA) and receiving a Category 3C license from the Dubai International Financial Centre (DIFC). This accomplishment is a testament to Money Protects' commitment to integrating financial innovation and technology, fostering sustainability, and building long-term confidence within the financial ecosystem.

As an upcoming unicorn leader in the evolving landscape of open banking and financial technology, Money Protects is making strides in the Dh20 billion untapped Mortgage Non-Performing Loan (NPL) market and an auxiliary Dh10/20 billion market. The company's innovative approach is encapsulated in its three-pronged composite innovation pack, designed to redefine traditional financial methodologies.

The innovation pack consists of three ground-breaking products:

  • EMI Sleeping Period: A novel Mortgage Loan Restructuring solution that provides an extended EMI-free period, (11 months to 5 years) alleviating financial stress for consumers.
  • Fixed EMI for Life: This concept aims to stabilise the loan's interest/profit rate, filling a void often overlooked under threshold consumers (below USD 50 Million) by conventional financial institutions.
  • Double Rental: An Equity Release concept that enables consumers to generate multiple income streams, thereby enhancing financial security.

In the UAE, the banking system's assets grew by 4.2 per cent in 2021, reaching Dh3.3 trillion. The NPL ratio rose from 6.5 per cent in 2019 to 7.9 per cent in 2021. Despite this, the banking system's provision coverage improved, with the specific provision coverage ratio reaching 60.0 per cent of non-performing assets, and the total provision coverage ratio at 86.6 per cent. The banking system's exposure to the real estate sector, constituting about 24.7 per cent of total loans, equates to Dh432 billion, showing a 7.4 per cent annual growth.

In this environment, Money Protects aims to target Dh20 billion plus (5 per cent of real estate NPL) with its innovative financial products, addressing a significant portion of the market. The company's solutions are poised to reshape the landscape of the real estate loan market, currently valued at $7,968 billion globally and expected to reach $23,121 billion by 2030.

Money Protects' founder and CEO, Mirza Ashraf Beg, emphasises the company's focus on balancing market and consumer needs through an online marketplace under an open banking and DeFi approach. The three products address consumer challenges like interest rate fluctuations and cash flow issues. Expressing the market availability for the above products is expected traction of $10 billion plus in three to four years.

The company's innovative model, registered as a 'Work of Science' under the title 'Decentralized Finance Model for Debt Restructuring, Long Term Credit, and Equity Release', in European IP Depository and seeks to revolutionise the industry by offering digital solutions for common financial challenges.

Money Protects' vision extends beyond short-term goals, focusing on supporting economic growth and stability. By targeting a significant portion of the real estate NPL market and offering innovative solutions, the company is set to play a pivotal role in transforming the financial landscape and supporting sustainable growth in the UAE market and beyond.

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