SCA launches a roadmap for its financial inclusion strategy

SCA launches a roadmap for its financial inclusion strategy

"The financial inclusion strategy ensures that a greater number of community members have access to securities-related products and services", H.E. Sultan Al Mansoori

The Securities and Commodities Authority (SCA) launched a roadmap for its financial inclusion strategy, a strategy that ensures that all segments of the society have access to financial services and products and that a wide range of innovative, cost-effective services are available through service providers.

In this context, H.E. Eng. Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the SCA Board, said that SCA's financial inclusion strategy aims to deliver financial services and products to the greatest number possible of UAE residents of all age groups and cultural and social backgrounds and to educate the target audiences and beneficiaries of these services and products of their rights and obligations by coordinating with strategic partners in the capital markets sector and the other relevant parties to maximize benefit.

He added that SCA is developing a countrywide strategy that involves all relevant parties. The strategy aims to ensure the provision of cost-effective, easily accessible financial services and products and of tools that help with financial and investment decision-making, using technology and innovation.

SCA 's partners in this initiative include financial markets and commodity exchanges, namely the Abu Dhabi Securities Exchange (ADX), the Dubai Financial Market (DFM), and the Dubai Gold and Commodities Exchange (DGCX); market institutions including all entities licensed by SCA to engage in securities-related activities; securities issuers (listed companies, mutual funds, etc.); new companies that provide innovative products and services (using technology); investors; and entrepreneurs.

Under the announced plan, all relevant entities that regulate other market sectors are expected to work in collaboration, including the Ministry of Economy, the UAE Central Bank, the Insurance Authority, the Ministry of Justice, the Ministry of Finance, the Telecommunications Regulatory Authority (TRA), charitable organizations, international organizations and institutions, such as the UN and the International Finance Corporation, and other entities that wish to be part of this initiative.

The plan aims to make financial services easily accessible to different segments of the society, including employees, retirees, housewives, the youth, domestic workers, low-income inpiduals, people of determination, and everyone with no access to capital markets. Such services are provided by securities companies, banks and financial institutions, insurance companies, non-bank funding sources (crowdfunding, government financing funds, etc.), and credit card companies.

The plan presented the elements that will help SCA achieve financial inclusion, including the National Investor Awareness and Financial Inclusion Project, which will serve as a tool to reach new classes of investors using smart applications; social media platforms; print, audio, and visual materials; conferences; symposiums; workshops; and lectures. The Fintech Project will also help with the delivery of capital market products and services to greater number of investors and followers. Among the other elements are online trading, crowdfunding, and the SMEs initiative with state-owned funds.

The implementation of the plan requires gathering information to understand the needs of the Emirati society through surveys, meetings with public and private institutions, and workshops to identify challenges, opportunities, and implementation priorities.

The plan considers lowering the cost of accessing financial services by encouraging competition, urging new companies to enter the sector, pricing financial services based on income and investor transactions, etc., and ensuring the delivery of persified services to the target audiences. This is done through the provision of regulatory support, the development of a timetable to speed up the introduction of legislation that provides a variety of financial instruments, and the organization of events and conferences to identify challenges and attempt to find innovative solutions (such as holding hackathons and inviting all relevant parties to attend and participate).

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