Arab Bank will be launching in a couple of weeks a new $30 million venture fund that’s targeted towards financial technology, their Chief Operating Officer, Eric Modave mentions to Zawya.
According to Modave, the fund will definitely be launched before the end of October and will be fully owned by Arab Bank. “It’s a $30 million fund,” he said. “The typical ticket size is $1 million – $3 million and it has an investment period of three to four years maximum, but if we find good opportunities quicker, we will fill the book quicker.”
Modave states that the fund would target FinTech investments that can contribute towards the growth of the bank. Some of these FinTech companies include blockchain and distributed ledger technologies, artificial intelligence, machine learning, and robotic technologies, and API (application programming interface) that will allow third parties to co-create products that offer revenue-sharing opportunities.
In addition, the bank is also planning on opening an Arab Bank Innovation Hub – a 950 square meter facility within their headquarters in Amman that will include co-creation spaces for local FinTechs.
There will also be a new AB Accelerator program in December where they will be mentoring a small group of FinTech firms for a period of four to six months, in addition, to take up equity stakes of up to $250,000 in their businesses.
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