Wednesday, October 27, 2021

UAE Online Loan Aggregator Market Size and Research 2021, CAGR Status, Growth Analysis, Business Updates and Strategies till 2027: Ken Research

Introduction

Loan aggregator is a middleman organization that gathers an individual personal and financial information on a loan applications and shops it around who might propose an individual a loan. Such aggregators charge some amount of price to deliver the individual end-to-end service in their entire loan application procedure. The online loan aggregator is speedily being accepted around underdeveloped region, for instance, around UAE, the online loan aggregator has emerged as one of the fastest-increasing industry. The effective growth in tie-ups with several banks supporting buyers in loan pre-application and the post-applications procedure has augmented requirement for online loan aggregators.

UAE Online Loan Aggregator Industry Outlook to 2024 - Driven by Shifting to Contactless Services & Easy Online Loan Facilitation

What are the lending patterns in the uae?

Containing of loans to Government, Business & Industrial sector, Public, Retail & Financial Institutions, gross credit outstanding around the UAE reached AED 1.7 Tn during 2019 recording a CAGR (2014-2019) of ~5%. Occupying the greatest share of ~50%, loans to business & industrial units have been growing majorly from Dubai & Abu Dhabi region while the North Emirates region experienced a decline throughout 2019. With ~2x higher interest rates charged by finance organizations, lending around the UAE is majorly registered by banks obtaining >90%of credit disbursed around the country. The second most required category of the loan was witnessed to be retail lending obtaining a share of about 21%of total credit outstanding. 

Retail loans-second most required loan category in the uae

Retail lending around the UAE entails loans disbursed to individuals for personal consumption purposes comprising Personal Loans, Mortgage/Home loans, Car Loans, and several others. Post-2016 oil crisis, the banking industry witnessed an augmented rate in NPAs & rejection rates thereby retail loan outstanding falling continuously to reach AED 361 Bn by 2019. However, trends such as falling interest rates, property prices, increasing regional requirement (Dubai & Northern Emirates) helped retail loan requirement to gain some momentum during 2019.

Highly concentrated competitive landscape

The key players in UAE Online Loan Aggregator Market are aiming greatly on innovations in technologies to advancing proficiency level. The industry growth outlook is captured by confirming ongoing procedure advancements of players and optimal strategies taken up by organizations to fight COVID-19 situation.

The competitive landscape around UAE Online Aggregator Industry is witnessed to be greatly concentrated with ~90% of market share occupied by top 4 players comprising YallaComapre, Souqalmal, BankOnUs & Paisa Bazaar competing on the basis of parameters such as Conversion rates, Traffic generated, After Loan Assistance, Loan Providers, Tools & Advisory services provided. The foremost strategy adopted by players comprises diversifying product portfolio, delivering comparison services across insurance, telecom, education, property, etc thereby aiming on becoming “One Stop Solution Provider”. With partnerships around all foremost loan providers in the country, the foremost distinguishing aspect among players is the level of customized advisory services delivered in the loan selection procedure.

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Covid 19 impacting loan industry

An outbreak of COVID 19 Pandemic is projected to leave major foremost across all industries. Adding to the woes, UAE suffered from plunging oil prices during April 2020 thereby contracting the country’s GDP by -3.5%. In order to decrease the dual shocks’ impact, CBUAE launched Targeted Economic Scheme delivering the relaxations around loan categories. In order to meet liquidity expenditures & working capital requirements, requirement for personal loans, credit cards & SME/Commercial loans are projected to augment substantially during 2020.

Future outlook

A foremost shift in customer behavior can be projected post-pandemic with people preferring contactless online services delivering opportunities for online aggregator services. On the competition front, foremost players are projected to invest in Artificial Intelligence & Machine Learning to match consumer requirement with solutions & in entire customer segmentation.

For More Information, refer to below link:-

UAE Online Loan Aggregator Market Research Report

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