Growth Strategy

UAE and GCC. Internal market

The users of “MYFFIN” are mainly labor migrants who live in the UAE as residents. Today 88,5% of the total UAE population are migrants with a projected migrant labor increase 4-5% annually. The Neobanking segment is expected to show a growth of revenue at 44.8% in 2023 and the number of users is expected to increase to 8.05 mln by 2026. Total Transaction Value in the Digital Payments segment is projected to receive $26.8 mln in 2022.

To attract customers the company will: • Inform the target audience about the advantages and benefits through the following communication channels: video product reviews in social networks and media, reviews of bloggers and influencers, articles and reviews on theme media resources, including the development of its own media platform; • Launch a large-scale referral program. Our users will be able to invite their friends, relatives and colleagues via a link. After being invited the user makes several transactions for a certain amount. The user who invited him will receive a cash reward; • Launch digital campaigns with a gradual increase in the number of connections of the target audience with the advertising message due to direct paid traffic and retargeting strategies; • Increase the loyalty of existing customers through community development, word of mouth. For migrants, we are preparing a separate platform based on a messenger, where users will have access to a lot of sections and joint chats for discussing various life, work and migration topics. The community will be in the public domain and each user will be able to recommend and invite other expats; • Collaborate with retail chains, services and payment systems to expand the product matrix and add new subscription plans for users. Business monetization is achieved through the use of basic financial services by clients: “fix price” for getting installment, “fix price” for transferring funds to other banks, subscription fees for using a certain set of financial products.

The business expansion is planned in two stages. The first stage is the UAE market and the second stage is the GCC and the MENA. First stage: - 2022/23. Obtaining banking licenses and partnerships with other banks to expand the product matrix for B2C clients; - 2023/24. Creating a mobile ecosystem (SuperApp) with integration of financial, lifestyle, retail and content products and services. Attracting new B2C customers as well as reaching B2B customers by expanding the product matrix. Second stage: - 2023/26. The “MYFFIN Tech” plans to start geographic expansion. The company’s strategy is aimed at expanding the service outside the UAE (primarily in Asia, parts of African countries and MENA). The idea is that after returning to their home country, the users will continue to use “MYFFIN”, given that all the necessary processes will be completed in order to provide for this. The main way to scale will be the use of new distribution channels. By expanding from the second year after launching to foreign markets, the company will benefit from increased sales and reduced share of overhead costs. In addition to the mobile financial application, each country will launch several products based on the needs of the audience. A separate team with a manager will be appointed for each product. The UAE will become a type of base from where we will be able to move to other markets in the future.

MENA. External market

In 2020, global remittance flows stood at US$702 billion, 77 percent (US$540 billion) of which went to low and middle- income countries (KNOMAD 2021). However, estimating the exact size of remittance flows is still difficult due to the high use of informal channels, especially by financially excluded migrants.

Financially excluded migrants are able to use formal Money Transfer Operators (MTOs) or traditional banks to send money to their home countries. Others use informal channels such as Hawala or Hundi, sending cash via family and friends, couriers and postal services, and taking cash upon travel. These channels are associated with high transfer fees, low exchange rates, theft risks and are projected to be 50 percent times larger than those through formal means (Ratha 2020).

Opening your own financial services network in migrants' home countries contributes to the officialization and increase of digital money flows through more convenient and cost-effective sending of money to relatives and friends. Simultaneously, after returning to their home country, the customers will continue to use “MYFFIN”, taking into account that all the necessary conditions will be prepared for this.

Egypt, Pakistan and India are considered effective regions for scaling. At the same time, it is worth considering the point access to other developing Gulf countries, such as Saudi Arabia, Qatar or Bahrain, which are an attraction for migrants from the same countries.

Financial inclusion for these countries will help eliminate poverty, hunger and gender inequalities, and promotes the health of migrants. It also economically empowers migrants, enabling them to either save or access credit and send remittances back to their home countries whenever needed.

2023/26 “MYFFIN” plans to start its geographic expansion. The company’s strategy is aimed at expanding the influence of the service outside the UAE, primarily in the Gulf countries, Asia and parts of African countries.

The main way to scale will be the use of new distribution channels. By expanding from the second year after the launch to foreign markets, the company will benefit from increased sales and reduce the share of overhead costs. In addition to the mobile financial application, each country will launch several products based on the needs of the audience. A separate team and manager will be formed for each product. The UAE will become a kind of base where we will be able to move to other markets in the future.

Our scaling goals are similar to those of our main fintech partner. Hes plans for the next year are to release into the countries of Egypt and Pakistan, which will allow us to start expansion before obtaining banking licenses and fully prepare the springboard for a full-scale release.

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