2016 – 2026 SAUDI ARABIA DIGITAL LENDING MARKET MARKET FORECAST & OPPORTUNITIES
www.techsciresearch.com MARKET INTELLIGENCE . CONSULTING
Scope of Report Product of Interest (POI): Digital Lending
Digital lending refers to the online disbursal of loans where all processes, even loan approval and recovery, take place remotely, typically through mobile apps. The shift is part of the digital transformation pushed by the pandemic.
Market Segmentation COMPONENT •
Solution •
Loan Origination
•
Decision Automation
•
Portfolio Management
•
Loan Servicing
•
Risk and Compliance Management
•
•
Loan Management
•
Business Process Management
•
Others
Service •
Professional
•
Managed
DEPLOYMENT MODE
REGIONS
•
Cloud
•
•
On-Premises
•
Western Region Northern & Central Region
END USER •
BFSI
•
Insurance
•
Credit Unions
•
Peer-to-Peer Lenders
•
Retail Banking
•
Others
Year Range
•
Eastern Region
•
Southern Region
BUSINESS MODEL •
Customer Driven
•
Staff Driven
Review Period
2016 – 2019 Base Year
2020 Estimated Year
2021 Forecast Period
2022 – 2026
2
Table of Contents S. No.
Contents
1.
Product Overview (A brief description of the category and product inclusions considered under the scope of the study to give clear picture to the client about the product of interest.)
2.
Research Methodology (Detailed description of the methodology used to conduct the research, Raw data backup, list of all secondary sources, List of respondents for primary surveys)
3.
Impact of COVID-19 on Saudi Arabia Digital Lending Market
4.
Executive Summary
5.
Voice of Customer
6.
Saudi Arabia Digital Lending Market Outlook, 2016-2026F 6.1.
Market Size & Forecast
6.1.1. 6.2.
Market Share & Forecast
6.2.1.
6.3
By Value
By Component (Solution v/s Service) 6.2.1.1.
By Solution (Loan Origination, Decision Automation, Portfolio Management, Loan Servicing, Risk and Compliance Management, Loan Management, Business Process Management, Others)
6.2.1.2.
By Service (Professional v/s Managed)
6.2.2.
By Deployment Mode (Cloud, On-Premises)
6.2.3.
By Business Model (Customer Driven v/s Staff Driven)
6.2.4.
By End User (BFSI, Insurance, Credit Unions, Peer-to-Peer Lenders, Retail Banking, Others)
6.2.5.
By Region
6.2.6
By Company (2020)
Market Map
3
Table of Contents S. No. 7.
Contents Saudi Arabia On-Premise Digital Lending Market Outlook 7.1.
Market Size & Forecast 7.1.1.
7.2.
8.
By Value
Market Share & Forecast 7.2.1.
By Component
7.2.2.
By Business Model
7.2.3.
By End User
7.2.4.
By Region
Saudi Arabia Cloud Digital Lending Market Outlook 8.1.
Market Size & Forecast 8.1.1.
8.2.
By Value
Market Share & Forecast 8.2.1.
By Component
8.2.2.
By Business Model
8.2.3.
By End User
8.2.4.
By Region
4
Table of Contents S. No. 9.
Contents Market Dynamics 9.1.
Drivers
9.2.
Challenges
10.
Market Trends & Developments
11.
Policy & Regulatory Landscape
12.
Saudi Arabia Economic Profile
13.
Competitive Landscape 13.1.
14. 15.
Company Profiles 13.1.1.
Company Details
13.1.2.
Products & Services
13.1.3
Financials (As Reported)
13.1.4.
Key Market Focus & Geographical Presence
13.1.5.
Recent Developments
13.1.6.
Key Management Personnel
Strategic Recommendations (Based on the findings of the report strategic recommendations on how to enter and expand market share) About Us & Disclaimer
5
RESEARCH METHODOLOGY
Research Methodology
Market Profiling
In-depth secondary research was conducted to determine top players in Saudi Arabia digital lending market, overall market size and segmental market size.
Formulating Questionnaire
In order to conduct industry experts’ interviews, TechSci formulated a detailed discussion guide.
Data Collection
Developing List of Respondents
List of industry players and industry specialists was developed.
TechSci conducted interviews with industry experts and industry players for data collection and verification.
Data obtained as a result of primary and secondary research was validated through rigorous triangulation.
Primary Research Data Collection
Data Filter & Analysis
Research & Intelligence
Actionable Insights
Business Solution
✓ Identifying Key Opinion Leaders ✓ Questionnaire Design ✓ In-depth Interviews
LinkedIn TechSci Internal Database
The data was scrutinized using MS-Excel, statistical tools and internal proprietary database to obtain qualitative and quantitative insights about Saudi Arabia digital lending market.
Desk Research
Company Analysis
✓ Recent Developments ✓ Market Changing Aspects/Dynamics ✓ Government Policies ✓ Final Conclusion
Primary Research ✓ ✓
Data Analysis
Data Validation
✓ Market Participants ✓ Key Strengths
Secondary Research ✓ ✓ ✓ ✓ ✓ ✓ ✓
Company Websites Company Annual Reports White Paper Study Financial Reports Investor Presentations Regulatory Body Associations, etc.
Paid Sources
✓ ✓
Factiva Hoovers
7
Research Methodology Baseline Methodology Our dedicated team of industry experts has monitored and analyzed various aspects of Saudi Arabia digital lending market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors such as rising awareness about
cybersecurity and technological advancements leading to enhanced protection during online transactions with providing extra security layers is fostering the growth of the digital lending market. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in Saudi Arabia digital lending market. Methodology Followed for Calculation of Market Size: •
Market Size by Value: Market size, in terms of value, for the year 2020 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as automotive companies, distributors, suppliers, industry experts, and other industry participants.
•
The team interviewed more than 40 – 50 automotive digital lending companies, 180 – 200 end users, and 15 – 20 Industry experts and other value chain stakeholders in Saudi Arabia digital lending market to obtain the overall market size for 2016-2020, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data for 20162020.
8
Research Methodology •
Respondents were asked about the current and future market growth rates, market shares by component, by deployment mode, by business model, by end user, by company and by each region. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other stakeholders depending upon the type of digital lending.
Methodology Followed for Calculation of Market Shares: Market shares by component, by deployment mode, by business model, by end user, by company and by each region were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares, trends and recent development in the Saudi Arabia digital lending market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers. Methodology Followed for Forecasting:
•
TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.
•
Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast Saudi Arabia digital lending market, TechSci Research used various forecast techniques such as: ✓
Moving Average
✓
Time Series Analysis
✓
Regression Analysis
✓
Econometric and Judgmental Analysis
9
Research Methodology TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long-term period to estimate and analyze the market demand scenario. It should be noted that the figures compiled are only for the organized market including market share data.
Partial List of Companies Interviewed
Key Secondary Sources
▪ Nucleus Software
▪ World Bank
▪ FIS, Inc
▪ TechSci Research Proprietary Database & Knowledge
▪ Temenos AG
Repository
▪ Fiserv, Inc.
▪ Company Annual Reports
▪ Newgen Software Technologies Limited
▪ Industry Magazines
▪ Arabian Hala Co.
▪ Industry Reports
▪ Saudi Fintech Company
▪ Statista
▪ Sulfah
▪ News Dailies
▪ Forus
▪ Credible Paid Databases
▪ Saudi Arabian Monetary Authority
10
Industry Brief Rising rate of internet penetration and growing popularity of peer-to-peer lending is expected to drive the Saudi Arabia Digital Lending market throughout the forecast period. According to TechSci Research report, “Saudi Arabia Digital Lending Market By Component (Solution v/s Service) By Solution (Loan Origination, Decision Automation, Portfolio Management, Loan Servicing, Risk and Compliance Management, Loan Management, Business Process Management, Others) By Service (Professional v/s Managed) By Deployment Mode (On-Premise v/s Cloud) By Business Model (Customer Driven v/s Staff Driven) By End User (BFSI, Insurance, Credit Unions, Peer-to-Peer Lenders, Retail Banking, Others), By Region, Company Forecast & Opportunities, 2026”, The Saudi Arabia Digital Lending market is expected to grow at a steady rate during the forecast period. Digital lending is the process of providing loans to consumers through digital platforms. Digital Lending facilitates borrowers and lenders to lend money through electronic means without using paper and is easier to use which ensures a higher consumer experience. Ongoing Saudi Vision 2030 promotes the digitization process to achieve higher efficiency and performance in different industry verticals. The rapid adoption of digitization by the BFSI industry fastens the process of loan lending and is easier than the traditional method. High-end investments by the major players to upgrade the existing infrastructure of the Digital Lending platform and coupled with higher adoption of advanced technologies such as artificial intelligence, machine learning, cloud computing is expected to benefit the growth of the Digital Lending market in the next five years. These technologies offer a fast, transparent, and easy process of raising the loan. Complexities and the risks associated with the lending process are pushing organizations to adopt digital services due to the presence of sensitive financial data. The rise in the number of cyberattacks has adversely affected financial institutions owing to huge monetary losses. The COVID-19 outbreak across the world which has been declared as a pandemic by World Health Organization has affected several countries adversely. Leading authorities of Saudi Arabia imposed lockdown restrictions and released a set of precautionary measures to contain the spread of novel coronavirus. Coronavirus-affected patients started suffering from shortness of breath along with coughing and sneezing. Consumers started to avoid going out and preferred online platforms over traditional methods to avail loans. The rise in adoption for online channels coupled with attractive offers given by Digital Lending platforms is expected to fuel the market growth in this period. However, rising concerns about data security and privacy may create a hindrance in the Saudi Arabia Digital Lending market growth. Saudi Arabia Digital Lending market is segmented into component, deployment mode, business model, regional distribution, company. Based on end user, the market can be divided into BFSI, insurance, credit unions, peer-to-peer lenders, retail banking, and others. The BFSI end user segment is expected to dominate the market in the forecast period, 2021-2026 owing to the widespread adoption of digital technology by the banks and growing preference for online lending. Stringent regulations and favorable government policies are promoting the adoption of digital services in the BFSI industry. Based on component, the market is bifurcated into solution and service. The solution segment is further divided into loan origination, decision automation, portfolio management, loan servicing, risk and compliance management, loan management, business process management, and others. The business process management segment is expected to witness significant growth in the forecast period owing to the technological advancements in cloud computing and big data analytics. It also lowers operational costs and increases overall productivity. Nucleus Software, FIS, Inc, Temenos AG, Fiserv, Inc., Newgen Software Technologies Limited, Arabian Hala Co., Saudi Fintech Company, Sulfah, Forus, Saudi Arabian Monetary Authority, and others are some of the leading players operating in Saudi Arabia Digital Lending market. Companies operating in the market are using strategies such as joint ventures, product launches, mergers, and research collaborations to boost their share and increase their geographic reach. “To promote the growth of Digital Lending platforms in Saudi Arabia, the government along with Gulf International Bank – Saudi Arabia (GIB) and Social Development Bank (SDB) launched a digital financing platform for micro and small enterprises. This platform uses Beehive modern technology solution which provides insights to make informed decisions and ensures a swift and efficient process making the lending process easier and more accessible. Therefore, supportive government initiatives along with strong economic growth of Saudi Arabia is anticipated to propel the market growth till 2026” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
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Sample Data - Snapshot Saudi Arabia Digital Lending Market Size, By Value (USD Million), 2016–2026F 5.00
7.00
6.00
8.00
CAGR By Value
2016
XX%
9.00
10.00
2020
2021E
14.00
13.00
12.00
11.00
CAGR By Value
15.00
2026F
YY%
Saudi Arabia Digital Lending Market Share, By Component, By Value, 2016–2026F
Service
Solution
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
2016
2017
2018
2019
2020
2021E
2022F
2023F
2024F
2025F
2026F
Saudi Arabia On-Premise Digital Lending Market Share, By Solution, By Value, 2016 & 2026F Loan Origination Loan Servicing 2026F 2025F 2024F 2023F 2022F 2021E 2020 2019 2018
2017 2016
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Decision Automation Risk and Compliance Management 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Portfolio Management Loan Management 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
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Report Name: SAUDI ARABIA DIGITAL LENDING MARKET MARKET FORECAST & OPPORTUNITIES 2016 – 2026
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About Us & Disclaimer
TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market.
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