UAE Online Loan Aggregator Market Outlook: Ken Research

Socio-Economic Outlook Of UAE

With a population of 9.68 Mn as of 2019, ~70% of the borrowing population belongs to the age group of 30-50 years. A major proportion of the population resides in urban areas including Dubai, Abu Dhabi & Sharjah thereby driving the demand for financial products in the country.

High Job opportunities attract the ex-pat population to the UAE. >80% population is dominated by Expats with major influx coming from Asian countries.

The government of the UAE has been diversifying its revenue & decreasing its dependency from Oil production to other areas such as tourism. Apart from this MSMEs have been contributing > 50% to country’s now oil GDP & at the same time providing employment opportunities to >90% of the working population.

Housing Indicators:  Declining house price index from 2014, especially in Dubai, restricting private investment. Index: 127.18 (Q2-’19), 173.8 (Q2-’14)

Banking & Insurance Sector contribution to GDP as of 2017: 8.6% to the overall country’s GDP.UAE Online Loan Aggregators Market

Overview of Banking Sector in the UAE

Increased penetration of virtual banking via Mobile (>85%), Online Banking (>90%) & ATMs (~100%) has caused a noticeable shift among customers to online banking for transactions like balance inquiries, funds transfer, etc.

Retail Lending Scenario in the UAE

Post 2016 oil crisis, NPAs increased therefore from there on banks became more cautious in disbursing loans to individuals. Increased rejection rates became a major reason for retail loan outstanding downfall from 2017. However, from 2019, there has been an observed recovery from Dubai & Northern Emirates region.

UAE Online Loan Aggregator Industry

Complete Customer Journey Followed: 7 step process starting from creating awareness among customers via articles, blogs, marketing channels, etc to disbursal of the loan (post loan assistance). Satisfied with previous customer service, the customer is expected to return back to avail of other products & services.

Operating Model: Major players tend to follow either Lead Generation Model (fee received on per lead supplied) or Complete Customer Acquisition (commission on loan amount)

Organizational Structure: Majorly comprises of Telesales team/Customer support team to drive the sales of different products. In-house Website development is also hired.

Technology Stack: Aggregators built the website platform in-house driven by AI and running algorithms based on predictive modelling. CRM software is also procured from Third Party Vendors.

Competitive Landscape of Online Loan Aggregators

Nature of Competition: Concentrated among 5 players: Yallacompare, Souqalmal, Baikonur, PolicyBazaar UAE & Compare4benefits.

Industry Stage: Early Adoption Stage  

Major Competing Parameters: Level of Traffic Generated & Conversion Rates, One-Stop Financial Service offerings, Partnerships with Loan Providers, After Loan Assistance & Customer Service, Tools, Tips & Advisory Services.

Future Outlook of Loan Industry In UAE

Owing to combined economic shock coming from plunging oil prices & COVID 19 outbreaks, immediate demand credit expected to be seen in 2020. Further, relaxations in loan terms & conditions, decreasing interest rates, etc expected to increase the demand for personal loans, credit cards, mortgages, SME/Commercial Loans. However, with car sales expected to continue its decline, car loans to remain underperforming segments.

Outlook of Online Loan Aggregators In UAE

COVID 19 outbreak expected to bring in major lifestyle changes making consumer prefer contactless services thereby creating a high potential for an online loan aggregation service. With high growth in revenue & lead generation (>100%) during 2019-2020, the industry is expected to become saturated thereby growing at a decreasing rate

 Analysts estimate that as a part of expansionary plans, major players are expected to diversify more in providing customized solutions & geographically expanding to other GCC countries.

Companies Covered: –

YallaCompare

Souqalmal

BankOnUs

Policy Bazaar UAE

SoulWallet

UAE Cash Loans

Time Period Captured in the Report: –

Historical Period: 2015–2019

Forecast Period: 2020-2024

Key Topics Covered in the Report: –

UAE Online Loans Market

UAE Online Loans Industry

UAE Online Loans Market Major Players

COVID 19 Impact on UAE Loan Industry

UAE Retail Loan Industry Analysis

Online Brokers vs Online Aggregators UAE

Online Brokers in UAE

Commission Rate Online Aggregators UAE

Credit Outstanding in the UAE in AED

UAE Retail Loans Market Share

Impact of COVID 19 on UAE Loan Industry

UAE Online Aggregator Services Market

YallaCompare Credit Cards Online Revenue

For More Information on the Research Report, Click on the Below Link: –

UAE Online Loan Aggregators Industry Future

Related Reports by Ken Research: –

India Online Loans Market Outlook to 2019 – Industry Transformation by the Advent of Web Aggregators

Competition Benchmarking: Indonesia Peer-to-Peer Lending Market Outlook to 2024

Contact Us: –

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249

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