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Abu Dhabi's financial services industry is going through a transformation. The launch of a dedicated payments company is part of that. Image Credit: Virendra Saklani/Gulf News

Dubai: The UAE's largest bank, FAB, will set up a new subsidiary to handle all of its cards and payments business and to expand that into the region. This move follows recent regulatory approval from the UAE Central Bank, and the entity is to go live early 2021.

"The carve out is designed to unlock the growth potential from new geographies and customer segments, accelerating FAB’s digital transformation," the Abu Dhabi bank said in a statement.

“A fully-owned subsidiary will open up the full potential of FAB’s payment business and commercialise our processing offering at scale, across a broad range of customers and partners," said André Sayegh, Group CEO. "In addition to our involvement in the new digital bank being created by ADQ, this move represents another significant long-term strategic opportunity for FAB.”

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The subsidiary will help government, merchant and institutional clients "grow core businesses" by providing customised payment solutions. It will focus on direct acquiring, issuer processing and acquiring processing.

“FAB is recognised as the fastest growing payment service provider in the UAE and a significant enabler of the region’s digital economy," the CEO added. "As the payments industry continues to move at a rapid pace, our ambition is to remain at the forefront, creating opportunities to collaborate with the right FinTechs and strategic partners to drive the payments ecosystem, deliver value and enable cost efficiencies."