How Online Loan Aggregators contributing to Retail Loan Penetration in UAE? – Ken Research

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The banking industry in UAE is a highly fragmented space with a presence of ~60 national & international banks in the country. Post-2016 oil crisis, suffering from high NPAs banks in UAE tended to be more cautious when lending particularly to corporate & individuals thereby increasing rejection rates. Even now, banks generally avoid lending to ex-pats (sometimes putting additional eligibility conditions) & prefer to provide loans to Nationals working in government jobs. Therefore, ex-pats (8.5 Mn population) are often seen resorting to loan aggregator channels.

Retail loans including personal loans, credit cards, mortgages/home loans, car loans are the second most demanded loan category in UAE. With minimal documentation & eligibility criteria, personal loans in the UAE are majorly acquired for the purposes of house renovations, travel, paying off other loans, etc. In past years, personal loans outstanding in UAE have been gaining momentum owing to increased working population demand from Dubai & Northern Emirates regions. However, given similar documentation & eligibility criteria, one must expect a similar trend to be followed in credit cards demand as well. On the contrary, credit card transactions have been falling owing to limited Merchant’s Banking Infrastructure availability and making credit card usage limited & challenging.

UAE Online Loan Aggreagtors Industry

From the past 2-3 years, property prices in the UAE have been following a downward trend reaching an average price of AED 2.58 Mn by 2019 and shifting from investor-led market to the owner-occupied market. Attaining a home loan in UAE is a costly & time-consuming process, therefore consumers often take online aggregator services to either compare loan prices or get assisted in the overall loan acquisition process.

In recent years, instead of purchasing new car consumers have been shifting to alternative options such as car leasing, car subscriptions, or purchasing used cars. This, in turn, has decreased the country’s year on year car sales subsequently negatively impacting car loan demand in the country. However, car dealerships often have tie-ups with multiple banks thereby helping purchasers in loan facilitation & charges negotiations which is one of the major reasons for consumers to not preferring online aggregator services.

SME loans can be a high potential area for online aggregators. According to Dubai SME Report of 2018, 400 thousand MSMEs contribute ~40% to the GDP and employ 42% of the city’s workforce. However, owing to credibility issues & failing to meet collateral requirements, SMEs in The UAE suffer from a 60-65% rejection rate, therefore, they are often seen to rely mainly on self-funding options or on aggregators for loan facilitation.

COVID 19 pandemic has made industries realize the importance of online operations and has brought in major shift in consumer behavior with consumers preferring contactless online services. Such a situation is expected to act as an opportunity for online loan aggregators thereby expecting tremendous growth through increased traffic & leads.

Companies Covered: –

YallaCompare

Souqalmal

BankOnUs

Policy Bazaar UAE

SoulWallet

UAE Cash Loans

Time Period Captured in the Report: –

Historical Period: 2015–2019

Forecast Period: 2020-2024

Key Topics Covered in the Report: –

Socio-Demographic, Economic & Banking Scenario in UAE

Snapshot of Lending scenario in The UAE with segmentation by Business & industrial Loans, Retail Loans, Loans to Government, Public Loans & Loans to Financial Institutions

Retail Lending Scenario with Segmentation by Personal Loans, Credit Cards, Mortgage/Home Loan, Car Loan and Others

Gaps in Traditional Loan Industry fulfilled by Online Loan Aggregators

Online Loan Aggregator Industry in The UAE with Business Model followed

End-to-End Customer Journey followed

Technological & Operational Structure followed

Regulatory Landscape in UAE Loan Industry

Competitive Landscape including Overview, Ecosystem & Cross Comparison among major players on basis of Operational, Loan Providers, Product Portfolio, Strengths & Weakness Analysis, website Features

Company Profiles-YallaComapre, Souqalmal, BankOnUs, PolicyBazaar UAE, SoulWallet, UAE Cash Loans

International Case Studies-PaisaBazaar (India), Money Super Market (UK)

Future Outlook of Retail Lending & Online Loan Aggregators

Impact of COVID 19

For More Information on the assess product portfolio, Click on the Below Link: –

UAE Online Loan Aggregators Industry Future

Related Reports by Ken Research: –

India Online Loans Market Outlook to 2019 – Industry Transformation by the Advent of Web Aggregators

Competition Benchmarking: Indonesia Peer-to-Peer Lending Market Outlook to 2024

Contact Us: –

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249

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