Mudaraba Financial Company to adopt Tigran Risk Platform, for the empowerment of SMEs credit access

Products 8 June 2022

We are extremely proud to announce that Mudaraba Financial Company, a Saudi Arabian Fintech enterprise, has implemented its Open Finance system through the adoption of Tigran Risk Platform, to deliver an improved financial risk assessment analysis to its clients.

Mudaraba is a strategic customer for modefinance international because of its positioning in the Region, and its ability to further leverage Tigran as a key tool for the financial ecosystem. Moreover, with the implementation of Tigran among their services, Mudaraba will be able to offer their customers a quicker and improved experience of access to credit.

Mudaraba Financial Company is a CMA licensed Fintech enterprise that provides small and medium businesses with access to funding through its financial services and a proprietary algorithm-driven funding platform based on issuance of SUKUK (Sharia compliant bonds). Their mission is to become a leading digital Islamic funding and investing marketplace, as well as to simplify and speed up the credit access for companies, within Sharia compliant financing products.

modefinance is the first European authorized Fintech Credit Rating agency and a Fintech company with great expertise in developing products and services with the most advanced technologies. Thus, Tigran by modefinance international, modefinance’s branch for global markets focusing on Asia and Africa, is a modular Rating-as-a-Service solution dedicated to financial institutions, banks and corporates, which provides risk assessment automation technologies and a proprietary rating methodology for the simplification of financial management.

Tigran has been widely adopted by financial institutions worldwide and has now been selected by Mudaraba Financial Company to integrate their own data and systems in order to save time and resources in the process of credit risk assessments and portfolio analysis, all while using Machine Learning and AI technologies. To further improve the entire experience on both the internal and customers’ side, Mudaraba will integrate within their processes a tailored pricing model that will leverage their analytics capabilities, thus allowing their analysts to increasingly automate the assessment process.

Mudaraba and modefinance international together

Cristian Giacomini, modefinance international CEO, said: “modefinance’s proprietary solution Tigran Risk Platform has already brought an overall 65% reduction in assessment times and costs to its users. We are delighted to welcome Mudaraba in this deal because of a shared group of values -transparency, process automation and digitalization- towards the digital transformation of the Middle-East business ecosystem. With our technologies made accessible, Mudaraba’s clients will be offered a more transparent and automated process of credit risk assessment and management, and analysts will be provided with a far more accurate picture of the entire financial situation of the subject under analysis.”

Ehab Al Dabbagh, Mudaraba co-founder, adds: “Our cooperation & partnership with mode finance Tigran Risk platform was instrumental in the success to offer digital innovative financing solutions to SMEs and investors in the debt capital market.”  

Mudaraba Financial Company got its name after an Islamic finance technique (mudarabah) in which an investor (rab al maal) and a borrower (mudareb) establish a profit-sharing partnership to undertake an investment activity. Under this structure, the rab al maal provides the funds and the mudareb the managerial know-how to manage the investment. The mudareb invests the funds on a Sharia compliant basis (according to which it is prohibited the use of interest rates), he or she earns a fee that is deducted from any profits for managing the funds or business and the parties share the profits according to a pre-agreed ratio.