For three years, Abwab AI has been revolutionizing SME financing in the Middle East. Through artificial intelligence, the company has transformed credit assessment. By automating the loan granting process, Abwab AI makes decisions instantaneous.
Founded by Baraa Koshak, Abwab AI addresses the structural inefficiencies that hinder SME financing in the region. Utilizing machine learning and transactional data, the platform assesses the creditworthiness of businesses in record time. This innovation reduces the turnaround time from several weeks to almost immediate decisions, thus facilitating access to capital for small businesses. With recent expansions in Egypt, the United Arab Emirates, and the United Kingdom, Abwab AI tailors its solutions to local specifics while maintaining robust technology. The company works closely with financial institutions to provide alternative credit signals, thus enabling the financing of SMEs that would otherwise be excluded. Since its inception, Abwab AI has processed over 400 million dollars in loans, demonstrating the effectiveness of its model. Abwab AI’s overall ambition is to become a key player in the smart financing of SMEs worldwide.
abawab ai: revolutionizing SME lending with artificial intelligence
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how abwab ai optimizes loan granting to SMEs
Abwab AI, founded by Baraa Koshak, aims to revolutionize the SME lending sector in the Middle East. Unlike traditional lenders, Abwab AI uses artificial intelligence and transactional data to automate the underwriting process. What previously took several weeks is now reduced to an instantaneous decision, allowing small and medium enterprises to gain faster access to the necessary funding.
In an interview with The Fintech Times at the Dubai Fintech Summit, Koshak explained that the main obstacle is not the lack of capital, but rather operational efficiency. Thanks to Abwab AI, manual steps are replaced by sophisticated algorithms that assess the creditworthiness of businesses more quickly and accurately.
what technologies does abwab ai use to automate lending
Abwab AI relies on advanced machine learning models to analyze the financial data of SMEs. By using information such as bank transactions and cash flows, the company generates alternative credit indicators that allow for a more comprehensive assessment of the financial health of businesses without formal credit history.
This innovative technological approach is similar to that of robo-advisors, which automate financial advice using algorithms. By automating the underwriting process, Abwab AI not only reduces the time required to approve a loan but also improves the accuracy of credit decisions.
what impact has abwab ai already had on the SME market
Since its launch, Abwab AI has processed over 400 million dollars in SME loans, helping numerous businesses overcome financial barriers. The impact of this technology is particularly significant in regions where SMEs are often excluded from traditional credit systems due to insufficient or outdated financial data.
By automating the underwriting process, Abwab AI enables banks and fintechs to scale their operations more rapidly while offering more favorable loan terms to small businesses. This increased efficiency contributes to economic growth and job creation within the region.
how is abwab ai expanding internationally
From its headquarters in Riyadh, Abwab AI is expanding its operations to Egypt, the United Arab Emirates, and the United Kingdom. Each market presents unique challenges: in the UAE, for example, the business abandonment rate is high, while in the UK, despite more available data, the underwriting process remains predominantly manual.
This international expansion allows Abwab AI to test and improve the robustness of its AI models through a diversity of data from different markets. By partnering with local actors and integrating platforms like FintechOS, Abwab AI ensures it remains adaptable and efficient in various economic environments.
what are the benefits for financial institutions using abwab ai
Banks and fintechs that adopt Abwab AI’s technology benefit from faster and more accurate underwriting processes. This allows them to offer competitive loan terms to SMEs while reducing the risks associated with lending. Additionally, by automating credit assessment, financial institutions can focus more on customer relationships and the development of innovative financial products.
By integrating Abwab AI, financial institutions also have access to an enriched database, facilitating credit decisions based on in-depth analyses and behavioral insights. This results in better risk management and an increase in the portfolio of performing loans.
how does abwab ai adapt to local specifics
Although the core platform remains uniform, Abwab AI customizes its solutions based on the particularities of each market. Whether by adapting machine learning models to local data structures or adjusting sales processes to meet specific customer needs, Abwab AI ensures optimal flexibility while maintaining consistent quality in its services.
For instance, in Egypt, where the market is large but volatile, Abwab AI has had to adjust its models to manage currency fluctuations and rising interest rates. This ability to quickly adapt to local conditions is a major asset that distinguishes Abwab AI from other market players.
what is the business model of abwab ai
Abwab AI adopts a B2B2C model, allowing financial institutions to scale their operations while finding new customers through integration with partner platforms. Unlike some fintechs that seek to become lenders themselves, Abwab AI positions itself as an infrastructure provider, facilitating access to capital for SMEs without being a direct financial institution.
This approach allows Abwab AI to collaborate with major players such as Chime, which has filed for an initial public offering on NASDAQ, or with companies like SmartStream, which partners with Finastra to provide a complete workflow in collateral management.
what are the future projects and ambitions of abwab ai
Abwab AI does not intend to stop there. The company plans to continue its international expansion while strengthening its technological capabilities. During its recent presence at the Dubai Fintech Summit, Koshak expressed his ambition to obtain at least three proofs of concept (POC) resulting from this event, thus demonstrating the effectiveness and flexibility of his solution.
By relying on strategic partnerships and continuously integrating the latest technological advancements, Abwab AI aims to become a global leader in the automation of loans to SMEs. This vision is based on robust technology and a deep understanding of local needs, ensuring that every SME, regardless of its market, can access the necessary funds to thrive.
