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.
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: –
Policy Bazaar UAE
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
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Related Reports by Ken Research: –
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Ankur Gupta, Head Marketing & Communications