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: –
- 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
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