How Online Loan Aggregators Are Contributing To UAE Retail Lending Penetration

GURUGRAM, India, October 6, 2021 / PRNewswire / – The banking industry in the UAE is a highly fragmented space with a presence of around 60 national and international banks in the country. After the 2016 oil crisis, suffering from high NPAs, UAE banks tended to be more cautious when lending especially to businesses and individuals, thus increasing rejection rates. Even now, banks generally avoid lending to expatriates (sometimes setting additional eligibility requirements) and prefer to grant loans to nationals working in government jobs. Therefore, expatriates (8.5 million inhabitants) are often seen resorting to the channel of loan aggregators.

Retail loans including personal loans, credit cards, mortgages / home loans, auto loans are the second most requested loan category in UAE. With minimal documentation and eligibility criteria, personal loans in UAE are mainly acquired for the purpose of home improvement, travel, other loan repayment, etc. In recent years, outstanding personal loans in UAE have gained momentum due to increased demand from the labor force of Dubai and Northern Emirates regions. However, given similar documentation and eligibility criteria, it is to be expected that a similar trend will also be followed in credit card application. On the contrary, credit card transactions have declined due to the limited availability of the merchant’s banking infrastructure and the limited and difficult use of credit cards.

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Over the past 2-3 years, property prices in the UAE have trended downward to an average price of AED 2.58 million by 2019 and move out of the market led by the investors at the owner-occupied market. Obtaining a home loan in the United Arab Emirates is a long and expensive process. Therefore, consumers often use online aggregation services to compare loan prices or get help in the overall loan acquisition process.

In recent years, instead of buying a new car, consumers have turned to alternative options such as car leasing, car subscriptions or buying used cars. This in turn decreased the country’s car sales year over year, which negatively impacted the demand for auto loans in the country. However, car dealerships often have links with multiple banks, helping buyers to facilitate loans and negotiate fees, which is one of the main reasons consumers do not prefer aggregation services. in line.

SME lending can be an area of ​​great potential for online aggregators. According to the 2018 Dubai SME Report, 400,000 MSMEs contribute around 40% of GDP and employ 42% of the city’s workforce. However, due to credibility issues and failure to meet warranty requirements, SMEs in UAE suffer from a rejection rate of 60-65%. They are therefore often seen to rely primarily on self-financing options or aggregators to facilitate lending.

The COVID 19 pandemic has made industries aware of the importance of online operations and has resulted in a major shift in consumer behavior, with consumers preferring contactless online services. Such a situation should present an opportunity for online loan aggregators, thus expecting considerable growth through increased traffic and leads.

Companies covered: –

  • YallaCompare
  • Souqalmal
  • BankOnUs
  • United Arab Emirates political bazaar
  • SoulWallet
  • UAE Cash Loans

Period entered in the report: –

Historical period: 2015-2019

Forecast period: 2020-2024

Main topics covered in the report: –

  • Socio-demographic, economic and banking scenario in the UAE
  • Overview of UAE lending scenario with segmentation by commercial and industrial loans, personal loans, government loans, public loans and loans to financial institutions
  • Retail loan scenario with segmentation by personal loans, credit cards, mortgage / home loan, auto loan and others
  • Gaps in the traditional lending sector filled by online loan aggregators
  • UAE Online Loan Aggregator Industry with Tracked Business Model
  • End-to-end customer journey followed
  • Technological and operational structure followed
  • Regulatory Landscape in the UAE Loan Sector

Competitive landscape including overview, ecosystem and cross comparison between major players based on operations, loan providers, product portfolio, strengths and weaknesses analysis, website functionality

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

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

Future prospects for retail and online loan aggregators

Impact of COVID 19

United Arab Emirates Online Loan Aggregator Market

Online loan industry in UAE

UAE Online Loan Market

UAE credit card revenue PolicyBazaar

PolicyBazaar Online Loans Market Share in United Arab Emirates

PolicyBazaar United Arab Emirates Personal Loan Income

UAE Income Loan Aggregators

Souqalmal United Arab Emirates Personal loan income

UAE Cash Loans Online Loan Market

United Arab Emirates Credit Card Online Market

United Arab Emirates Fintech Market

UAE Online Aggregation Services Market

Online auto loan market in United Arab Emirates

WATER WATER online distribution loan

UAE Online Loan Aggregator Industry

For more information on the research report, click on the link below: –

UAE Online Loan Aggregator Industry

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