1. With rich, diverse & unparalleled infrastructure, the UAE Loan Industry driven by high corporate loan demand.
Trends and Developments in UAE Online Loan Aggregator Industry
- Lending majorly dominated by national banks with wide distribution network, occupying >90% of all banks credit disbursal.
- With major investment in hydrocarbon projects & other infrastructure projects, credit demand by government has been rising & expected to further rise in future as well.
- Traditional methods of lending (Friends/family) are still preferred choice for availing loans by people with below avg credit history.
- Banks are undertaking consolidation activities thereby reducing number of branches, cash offices & promoting digital banking services.
2. Technological Evolution in UAE Banking Services.
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Adoption of Blockchain technology in enhancing “Know- Your-Customer” processes, useful in client onboarding, cross border transfers, payments & compliance reporting.
Tasharuk Platform: Launched by UBF to fight against cyber-attacks on banks. Platform enables cyber threat information sharing, identify threats & enhance defense systems.
Incorporating Artificial Intelligence in data analytics, combatting fraudulent activities & compliance improvement, further increasing focus on customer dealing & decision-making processes.
Increased penetration of virtual banking channels including Mobile (>85%), Online Banking (>90%), Branch/Call center (>90%) and ATMs (~100%).
Noticeable shift among customers to online medium for undertaking non-cash transactions of balance enquiries, fund transfers etc.
3. Housing Loan, one of the fastest growing retail loan segments.
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- In 2019, average house price in Dubai decreased by ~12% reaching to ~AED 2.58 Mn, thereby, shifting from investor led market to owner-occupied market.
- While borrower’s previously preferred fixed interest rates but with Fed Reserve Predictions (2019), noticeable trend was observed for variable rate schemes.
- Customers rising preferences for loan providers/aggregators offering other benefits like property management services & post-handover assistance services.
- Dubai is dominated by expat population (11 times of Emirati population), who are observed to be preferring indirect channels due to high documentation & eligibility requirements.
- Current lending process in The UAE is partially offline; however; with advancements & relaxations in regulations could help in making the process online.
For more insights on the market intelligence, refer to the link below:-
UAE Online Loan Aggregator Market
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