Dubai – DFSA’s 2020 Summer Innovation Testing Licence Program
Tuesday, 07 07 2020, Category: Economy, Country: U.A.E
The Dubai Financial Services Authority (DFSA) is pleased to announce that it has accepted 16 firms into its 2020 Summer Innovation Testing Licence (ITL) Cohort. The ITL Programme provides a unique environment that helps firms to test innovative solutions in and from the Dubai International Financial Centre (DIFC). The ITL provides these firms with temporary flexibility to test and develop concepts within a restricted regulatory environment. The 16 firms can now begin the process to apply for an ITL, with the first batch of licences expected to be issued in October. A total of 34 firms applied for the Summer Cohort, the largest applicant pool to date. This is a clear indication that the DIFC is strengthening its already strong position as the financial centre of choice for financial services innovation.
In April 2020, the DFSA announced it was accepting applications from international technology-driven companies. Firms were required to provide a clear explanation of their planned business model and their proposed innovative product or service. Of the 16 firms accepted into the upcoming Cohort, 13 propose to provide or arrange money services, which falls under the new regime the DFSA launched in April 2020. The types of business models accepted include payroll solution applications, payments and cross-border money transfer platforms, E-wallet providers and AI-supported wealth management platforms. Many of these business models are focused on facilitating financial inclusion and literacy by serving low-income migrant workers.