Middle East-based payment solutions provider Magnati has entered a strategic agreement with RAKBANK to introduce a merchant financing platform. As part of their collaboration, Magnati and RAKBANK are set to deliver small and medium-sized enterprises (SMEs) access to credit facilities via the latter by utilising real-time point-of-sale (POS) transaction data translated into decision metrics for augmented underwriting decisions.

In addition, the two organisations’ platform plans to provide services such as business loans, invoice financing, equipment financing, POS financing, receivable financing, and insurance. Through this, Magnati and RAKBANK intend to allow SME merchants to meet their financial needs, demands, and preferences more efficiently. Magnati and RAKBANK’s plans to support small businesses The collaboration between the two organisations aims to allow merchants leveraging Magnati’s payment solution to benefit from a simplified loan application process with repayments automatically deducted from daily payouts, which in turn optimises cash flow management.  Also, with its knowledge and capabilities in SME lending, RAKBANK plans to utilise the platform's real-time merchant financial insights to underwrite loans more effectively and accurately, ensuring more accelerated credit access for SMEs and assisting long-term business sustainability. When commenting on the announcement, representatives from Magnati underlined that the platform allows banks and financial institutions to underwrite based on proactive intelligence conducted on transaction data developed by the company.

By teaming up, Magnati and RAKBANK are committed to improving the financial landscape for SMEs and assisting them in scaling their operations in the UAE’s entrepreneurial sector. Furthermore, RAKBANK’s officials commented that one of their company’s objectives is to provide customised and augmented financial solutions that support businesses in their growth trajectory. The strategic agreement with Magnati focuses on providing SMEs with access to funding and essential financial services. Additionally, by utilising real-time data, RAKBANK can make faster, more informed lending decisions, which in turn enables businesses to benefit from more opportunities and achieve their long-term objectives. The current news follows RAKBANK’s partnership with Bitpanda, with the two organisations working together to offer a platform that allows UAE residents to manage digital assets.

The announcement, which was made in August 2024 and was still subject to CBUAE approval, planned to support the bank’s customers in pursuing various digital asset use cases unlocking one of the most complete offerings available in the UAE market. .