How online loan aggregators are helping retail loan penetration in the UAE – Ken Research


Gurugram, India, March 09, 2022 (GLOBE NEWSWIRE) — The banking sector in the UAE is a highly fragmented space with a presence of around 60 domestic and international banks in the country. After the 2016 oil crisis, suffering from high NPAs, banks in the UAE tended to be more cautious when lending especially to businesses and individuals, thus increasing rejection rates. Even now, banks generally avoid lending to expats (sometimes imposing additional eligibility requirements) and prefer to lend to nationals working in the government. Consequently, expatriates (populations of 8.5 million) are often seen resorting to the channel of loan aggregators.

Personal loans, including personal loans, credit cards, mortgages/home loans, car loans, are the second most requested category of loans in the UAE. With minimal documentation and eligibility criteria, personal loans in UAE are mainly acquired for the purpose of home renovations, travel, repayment of other loans, etc. Over the past few years, ongoing personal loans in the UAE have grown due to the increase in demand from the working population 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 the application for credit cards. On the contrary, credit card transactions have declined due to the limited availability of merchant banking infrastructure and the limited and difficult use of credit cards.

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Over the past 2-3 years, real estate prices in the UAE have been on a downward trend reaching an average price of AED 2.58 million by 2019 and transitioning from a market led by investors to an owner-occupied market. Obtaining a home loan in the UAE is an expensive and time-consuming process. Therefore, consumers often use online aggregation services to compare loan prices or to get help with 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 reduced the country’s car sales year-on-year, which negatively impacted the demand for car loans in the country. However, car dealerships often have ties to multiple banks, helping buyers with loan facilitation and fee negotiations, which is one of the main reasons consumers do not prefer online aggregation services. line.

Small business lending can be a high potential area 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 non-compliance with collateral requirements, SMEs in the UAE suffer from a 60-65% rejection rate and are therefore often seen as relying primarily on alternative options. self-financing or on aggregators to facilitate loans.

The COVID 19 pandemic has made industries aware of the importance of online operations and brought about 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
  • Policy Bazaar UAE
  • Soul Wallet
  • UAE cash loans

Time period captured in the report: –

Historical period: 2015–2019

Forecast period: 2020-2024

Major Topics Covered in the Report:-

  • Socio-demographic, economic and banking scenario in the UAE
  • Overview of UAE Lending Scenario with Segmentation by Business & Industrial Loans, Retail Loans, Government Loans, Government Loans and Financial Institution Loans
  • Retail lending scenario with segmentation by personal loans, credit cards, mortgage/housing, car loan and others
  • Gaps in the traditional lending industry filled by online loan aggregators
  • UAE Online Loan Aggregators Industry with Followed Business Model
  • End-to-end customer journey tracking
  • Technological and operational structure followed
  • Regulatory landscape in the lending industry in the UAE

Competitive landscape including overview, ecosystem and cross-comparison between major players on the basis of operations, loan providers, product portfolio, strengths and weaknesses analysis, website features

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

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

Future prospects of retail loans and online loan aggregators

Impact of COVID-19

UAE Online Loan Aggregators Market

UAE Online Lending Industry

UAE Online Loan Market

UAE Credit Card Revenue PolicyBazaar

PolicyBazaar UAE Online Lending Market Share

PolicyBazaar UAE Personal Loan Income

UAE Income Loan Aggregators

Income from Souqalmal Personal Loans in UAE

UAE Cash Loans Online Loans Market

UAE credit card online market

UAE Fintech Market

UAE Online Aggregation Services Market

United Arab Emirates Online Auto Loan Market

UAE UAE Online Distribution Loan

UAE Online Loan Aggregators Industry

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

UAE Online Loan Aggregators Industry

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Contact us:

Ken Research
Ankur Gupta, Marketing and Communications Manager
[email protected]

Contact Us:

Ken Research
Ankur Gupta, Head Marketing & Communications
[email protected]

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