In a significant development for the financial sector, Money Protects Capital Limited has achieved a crucial milestone by securing in principle 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 3-pronged composite innovation pack, designed to redefine traditional financial methodologies.
The innovation pack consists of three groundbreaking products:
• EMI Sleeping Period: A novel Mortgage Loan Restructuring solution that provides an extended EMI-free period, (11months to 5 years) alleviating financial stress for consumers.
• Fixed EMI for Life: This concept aims to stabilize the loan's interest/profit rate, filling a void often overlooked under threshold consumers (below Dh50 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% in 2021, reaching Dh3.3 trillion. The NPL ratio rose from 6.5% in 2019 to 7.9% in 2021. Despite this, the banking system's provision coverage improved, with the specific provision coverage ratio reaching 60.0% of non-performing assets, and the total provision coverage ratio at 86.6%. The banking system's exposure to the real estate sector, constituting about 24.7% of total loans, equates to Dh432 billion, showing a 7.4% annual growth.
In this environment, Money Protects aims to target AED 20 billion plus (5% 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, Mr. Mirza Ashraf Beg, emphasizes the company's focus on balancing market and consumer needs through an online marketplace under an open banking & DeFi approach. The 3 products address consumer challenges like interest rate fluctuations and cash flow issues. Expressing the market availability for the above products is expected traction of USD 10 Billion plus in 3 to 4 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 revolutionize 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.
