Key regions: Singapore, United States, Israel, United Kingdom, Australia
The Marketplace Lending (Consumer) market in United Arab Emirates has been experiencing significant growth in recent years.
Customer preferences: Consumers in United Arab Emirates have shown a growing preference for marketplace lending as a convenient and accessible alternative to traditional banking channels. The ease of accessing loans through online platforms has attracted a large segment of the population, especially the younger generation who are more comfortable with digital transactions. Additionally, marketplace lending offers competitive interest rates and flexible repayment options, which further appeals to borrowers.
Trends in the market: One of the key trends in the marketplace lending market in United Arab Emirates is the increasing number of platforms catering to specific customer segments. These platforms are designed to meet the unique needs of different borrower profiles, such as small business owners, students, and individuals with limited credit history. By targeting specific customer segments, marketplace lenders are able to provide tailored loan products and services, thereby attracting a wider customer base. Another trend in the market is the adoption of advanced technology and data analytics to assess borrower creditworthiness. Marketplace lenders in United Arab Emirates are leveraging artificial intelligence and machine learning algorithms to analyze vast amounts of data and make more accurate lending decisions. This not only enables lenders to reduce the risk of default but also allows them to offer loans to individuals who may have been overlooked by traditional banks due to their lack of credit history.
Local special circumstances: The United Arab Emirates has a large expatriate population, with individuals from various countries working and residing in the country. This presents a unique challenge for marketplace lenders, as borrowers may have different credit histories and financial backgrounds. To address this, marketplace lending platforms in United Arab Emirates have developed sophisticated risk assessment models that take into account the specific circumstances of expatriate borrowers. By considering factors such as employment stability and remittance history, lenders are able to provide loans to this segment of the population.
Underlying macroeconomic factors: The strong economic growth and increasing urbanization in United Arab Emirates have contributed to the development of the marketplace lending market. As the country continues to diversify its economy and attract foreign investments, there is a growing need for accessible and efficient financing options. Marketplace lending fills this gap by providing quick and convenient access to capital for individuals and businesses. Furthermore, the low interest rate environment in United Arab Emirates has made marketplace lending an attractive option for borrowers. With traditional banks offering relatively high interest rates on loans, marketplace lenders are able to provide more competitive rates, attracting borrowers who are seeking affordable financing options. In conclusion, the Marketplace Lending (Consumer) market in United Arab Emirates is growing rapidly due to customer preferences for convenience and flexibility, as well as the adoption of advanced technology by lenders. The market is also shaped by local special circumstances, such as the presence of a large expatriate population. The underlying macroeconomic factors, including strong economic growth and low interest rates, further contribute to the development of the marketplace lending market in United Arab Emirates.
Data coverage:
The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.Modeling approach / Market size:
Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.
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