This investment was carried out through Emirates NBD’s Innovation Fund, which was established earlier this year. The primary goal of this fund is to combine the bank’s extensive regional expertise with the agility and technological innovations offered by fintech companies.
Ahmed Al Qassim, the Group Head of Wholesale Banking at Emirates NBD, explained the bank’s motivation behind this strategic move. He acknowledged the rapid changes taking place in the fintech landscape and the impact they have on the banking industry. Emirates NBD aims to stay ahead of the curve by identifying and supporting emerging technologies that will shape the future of finance, ultimately strengthening its position as one of the leading financial institutions in the region.
Komgo is a notable player in the trade finance sector, known for its blockchain-based trade financing platform. This platform is built on JP Morgan’s Quorum blockchain technology and is designed to simplify and enhance the efficiency of international trade-related financial processes. Currently, Komgo boasts a substantial user base of around 10,000 enterprises worldwide, and its platform processes daily transactions with a total value of approximately $1 billion.
Souleïma Baddi, the CEO of Komgo, expressed her delight at Emirates NBD’s strategic equity investment in the company. She highlighted the significance of this investment, as it marks the first time a Middle Eastern bank has taken shares in Komgo. This move serves as a powerful validation of Komgo’s impressive track record and its promising prospects for the future.
Emirates NBD’s investment in Komgo comes on the heels of a similar move by Banco Santander, which also announced a working partnership and a strategic stake in the trade finance fintech company. This underscores the growing trend among banks to collaborate with and invest in fintech firms as they adapt to the changing landscape of technology and finance.