Fintech Galaxy, a UAE-based fintech, announced on Thursday the acquisition of Egypt’s open banking startup, Underlie, which is offering APIs to banks and businesses.

Underlie Acquisition Looking to Boost Fintech Galaxy Market Footprint

The acquisition is expected to help Fintech Galaxy, which operates with a central bank license, to boost developments in its open finance and open banking’ divisions across the Middle East. In addition, the deal will help the company to materialize its aim to develop and launch new digital solutions.

“The acquisition of Underlie anchors our open banking/open finance efforts and enables us to succeed in providing enhanced, seamless, and enjoyable financial experiences, expanding, and consolidating our position across the MENA markets,” said Mirna Sleiman, the Founder and CEO of Fintech Galaxy.

As a part of the acquisition, Underlie employees will join Fintech Galaxy. However, none of the companies revealed the financial terms of the deal.

Open banking provides fintech startups access to banking data to develop innovative financial services products. It has brought the infrastructure of legacy financial institutions and the agility of fintech startups together.

Many companies are now diving into the open banking space. Last month, London-based Equals revealed its plans to acquire the open banking payments platform, Roqqett Limited for a total consideration of up to £2.25 million.

Check out the recent London Summit session on "Future of Payments: The Revolution Will Not Be Wired."

Fintech Galaxy Expanding in the Middle East

Fintech Galaxy has a presence in the UAE, Saudi Arabia, Bahrain, Egypt, Lebanon, and Moldova. It now aims to broaden its offerings for banks, financial institutions, merchants, and also other fintech.

The acquisition of Underlie came when Egypt witnessed 230 percent growth in cashless payments, and its local open finance market is expected to grow by 25 percent in the next five years. Further, the country has about 39 banks nationwide, showcasing a massive potential to implement open banking standards swiftly.

“Underlie’s expertise in building open banking APIs and knowledge of the local market will help us speed up our Egypt market penetration, boost the expansion in the region and release countless opportunities to create new open banking/open finance-enabled use cases,” said Riyadh Al Zamil, the Chairman of Fintech Galaxy’s Board of Directors and Investors.