Zand Bank, the first digital corporate lender in the UAE, is planning to expand to other markets in the Gulf and Africa within the next three years to boost growth and diversify its product offerings, its chief executive has said.
The digital lender, which is in its fourth year of operation, has already been approached by several African banks and financial institutions in the Gulf region for joint ventures and partnership, Michael Chan told The National on the sidelines of Abu Dhabi Finance Week.
“One and half years ago, many banks, at least from four countries in Africa and two in the GCC, approached us asking whether we want to be joint venture partners, leveraging their license, or co-create a new bank together in the region,” Mr Chan said.
“But at that time, we were very busy on transformation and that's why I think the next three years is probably the right time."
The higher rate of digital adoption in Africa as well as its strong trade ties with the UAE builds the case for Zand to expand its presence in the continent.
“The UAE actually serves a few purposes – one as an investor and two, as a re-export hub for Africa – on both sides: African trade going out, and also the China trade going in,” Mr Chan said.
Zand, he said, is confident its future business and growth based on payment corridors and border trade flows, which is already a strong focus area for the lender. “That's why Africa and GCC will be the next target,” Mr Chan explained.
He said there is no particular Gulf or African market Zand is aiming for first. “Banks just follow the money,” he said. “The country that's growing the fastest will be the country to go to."
Zand Bank chief executive Michael Chan was speaking at Abu Dhabi Finance Week. Photo: The National
The bank will maintain its UAE DNA, he added, even in new markets, and will not only
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