How Online Credit Aggregators Are Contributing to Retail Credit Penetration in the UAE
GURUGRAM, India, October 6, 2021 / PRNewswire / – The UAE banking industry is a highly fragmented area with a presence of ~ 60 national and international banks in the country. After the 2016 oil crisis, banks in the UAE, which suffered from high NPAs, tended to be more cautious about lending, especially to businesses and individuals, which increased rejection rates. Even now, banks generally avoid lending to expats (sometimes they impose additional eligibility requirements) and prefer to lend to citizens who work in public jobs. For this reason, expats (8.5 million populations) often resort to the credit aggregator channel.
Personal loans including personal loans, credit cards, mortgage / home loans, auto loans are the second most requested loan category in UAE. With minimal documentation and eligibility criteria, personal loans in the UAE are mainly used for home renovations, travel, repayment of other loans, etc. Dubai and Northern Emirates regions. In view of similar documentation and approval criteria, however, a similar trend must be expected in the demand for credit cards. 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.
Request sample report @ https://www.kenresearch.com/sample-report.php?Frmdetails=MzM3MDc0
For the past 2-3 years, UAE home prices have followed a downward trend, reaching an average price of 2.58 million by 2019. Obtaining a home loan in the UAE is an expensive and time-consuming process, so consumers often take online – Use aggregator services to either compare loan prices or be assisted with the entire loan acquisition process.
Instead of buying a new car, in recent years consumers have switched to alternative offers such as car leasing, car subscriptions or buying a used car. This, in turn, has reduced the country’s auto sales year on year, which has subsequently had a negative impact on the demand for car loans in the country. However, car dealerships often have multiple bank connections, thereby helping buyers with loan broker and fee negotiations, which is one of the main reasons consumers prefer not to prefer online aggregation services.
SMB lending can be an area of ââhigh potential for online aggregators. According to the 2018 Dubai SME Report, 400,000 MSMEs contribute ~ 40% of GDP and employ 42% of the city’s workforce. However, due to credibility issues and non-compliance with collateral requirements, SMEs in the UAE suffer from a rejection rate of 60-65% so are often seen to rely primarily on self-financing options or on aggregators for lending.
The COVID-19 pandemic has made industry aware of the importance of online operations and has fundamentally changed consumer behavior as consumers prefer contactless online services. Such a situation is expected to present an opportunity for online credit aggregators who expect huge growth from increased traffic and leads.
Companies Covered: –
- Rules Bazaar United Arab Emirates
- Soul purse
- UAE cash advances
Period covered in the report: –
Historical period: 2015-2019
Forecast period: 2020-2024
Key issues addressed in the report: –
- Socio-demographic, economic, and banking scenario in the United Arab Emirates
- Snapshot of the United Arab Emirates loan scenario, segmented by Business and Industrial Loans, Retail Loans, Government Loans, Public Loans, and Financial Institution Loans
- Retail loan scenario with segmentation by Personal Loans, Credit Cards, Mortgage / Home Loans, Auto Loans, and others
- Gaps in the traditional credit industry are being filled with online credit aggregators
- UAE Online Credit Aggregator Industry and Business Model Following
- An end-to-end customer journey followed
- Technological & operational structure followed
- Regulatory landscape in the UAE lending industry
Competitive landscape including overview, ecosystem and cross-comparison between the main players on the basis of operational, credit providers, product portfolio, strengths and weaknesses analysis, website functions
Company Profiles-YallaComapre, Souqalmal, BankOnUs, PolicyBazaar UAE, SoulWallet, UAE Cash Loans
International Case Studies PaisaBazaar (India), Money Supermarket (Great Britain)
Future Outlook for Retail Loans and Online Loan Aggregators
Effects of COVID 19
Online loan aggregator market UAE
Online lending industry in the United Arab Emirates
Online loan market in the United Arab Emirates
PolicyBazaar UAE credit card receipts
PolicyBazaar UAE online loan market share
PolicyBazaar UAE Personal Loan Revenue
UAE Revenue Credit Aggregators
Souqalmal UAE personal loan receipts
UAE Cash Advances Online Loan Market
United Arab Emirates online credit card market
UAE fintech market
UAE Online Aggregator Services Market
UAE online car loan market
UAE online sales loan UAE
UAE online credit aggregator industry
For more information on the research report, click the link below: –
Related reports from Ken Research: –
With over 150 registered insurers Indonesia lags behind other Asian countries in terms of insurance penetration rate (2.8% versus the global average of 6.1%). Insurance in Indonesia is usually only bought based on regulatory requirements and those who buy it out of necessity usually opt for packages with additional benefits such as repair insurance, reimbursement of prescription drugs, etc. Of the numerous types of insurance offered in the country, life insurance has been observed with a market share of> 40 % To be a leader, especially through “Corporate Benefits &” Investment Linked Products “.
The auto finance market in Singapore was in a growth phase over the 2015-2020 period due to the growing digital advances to simplify the loan application process, the emergence of green car loans, the introduction of financial aggregators and more. The Singapore Auto Finance Industry grew at a CAGR of 0.7% in 2015-20 based on auto loans paid out and 2.2% on auto loans outstanding. The CAGR was comparatively low as fewer cars were financed in 2020 due to COVID-19. As of 2020, an average of 85-90% of vehicles sold Singapore were funded, with approximately 65% ââof the cost being borrowed from Auto Financial Institutions.
The auto finance market has played a crucial role in the total contribution to GDP (constant prices) in the Philippine economy, with a value proposition greater than 25% in relation to auto loans outstanding through the end of 2019 (tentatively). The car finance market in Philippines is fairly new and has not been able to penetrate the land. There is a lack of knowledge and awareness in the country, leading to the problem that people are choosing to make cash purchases instead of financial payments. The main business is carried out by two types of companies, namely banks and subsidiaries and non-bank financial institutions. The only proprietary funding in the country is Toyota Financial Services Philippines, and otherwise there is a shortage of proprietary financial institutions.
The auto finance market has played a vital role in the overall contribution to GDP in the Thai economy with a valuable contribution of ~ in terms of auto loans disbursed through the end of 2019. The market shows similar trends that correspond to the domestic vehicle sales market, qualitatively & quantitatively. After a breakout in 2015, the market is currently in its recovery phase and is growing at a slow rate. Thailand The size of the auto finance market in terms of auto loan outstanding increased over the 2014-2019P period and recorded a positive CAGR over the same period. Growth drivers include lower lending rates, rising new and used car sales, rising household disposable income and higher farm incomes, as well as progressive technological advances mandated by the government and the adoption of digitization by all of the country’s major financial institutions.
Ankur Gupta, Head of Marketing & Communication
SOURCE Ken Research