Digital Lending – Middle East & Africa movements

12 October 2021

Middle East & Africa Digital Lending platform market is expected to gain a considerable market growth in the Post-Pandemic Covid-19 years ahead. The Pandemic accelerated existing trends in remote work, e-commerce, and automation in all industries including the banking industry. According to Data Bridge Market Research analyses that the market is growing at a CAGR of 17.4% in the forecast period of 2021 to 2027 and is expected to reach USD 1,482.10 million by 2027. Growth in financial sector is a driving factor for the market growth and increasing growth in digitalization and high penetration of internet services and consequently digital lending is expected to witness an unprecedented increase in default rates.

High penetration of internet services drives the market. Lack of digital literacy in some parts of the MEA region and the slow pace of Covid-vaccination are acting as a restrain in some countries in this market. Governments taking initiatives to move towards digitalization is creating new opportunities for the Middle East & Africa digital lending platform market.

Technology will act as a stimulus for innovation and risk mitigation, and it would be an essential priority for Banks and Fintech companies

Lending platform market in this region is segmented into banking, financial services, insurance companies, P2P (peer-to-peer) lenders, credit unions, saving and loan associations. Banking dominates this segment as solutions such as loan origination, Debt Collection and loan managements which are major applications of digital lending platforms are usually being utilized by banks considering better services offered to the customers. Also, other solutions such as portfolio management can also be done by banks using lending platforms.

For Banks and Fintech companies in this region that will lend digitally, technology will act as a stimulus for innovation and risk mitigation, and it would be an essential priority for them. By focusing on data science and analytics, the risk of fraud and delinquencies can be removed, and it will enable the consumers to drive forward through credit complexities due to the pandemic. It would be vital for fintech to ensure that they can provide services to the consumers as per their need once the pandemic subsides. Therefore the automated processes implementation for gaining insight into the eligibility and facilitating rapid processing would be the ultimate factor for their success.

Relational is a leader in Digital lending software solution market. We take pride in servicing our existing and new customers with providing solutions that helps lenders to identify process efficiencies, customise workflows, and comply with regulatory changes. We provide multi-channel, platform independent solutions, built to serve a wide variety of financial products and handles credit products decisioning, origination, management and collection processes.

Especially with P2P (peer-to-peer) lenders, credit unions, saving and loan associations, the amounts of individual loans can be very low and the number of loans very high. Our solutions can handle those high transaction volumes cost efficiently and provide the lenders with all regulatory and management reporting, which is one of our key competitive advantages.

Contact us to discuss your specific needs.


CKV / Relational: New collaboration

5 April 2022

The Belgian niche bank CKV has selected AroTRON Debt Management platform to manage their loans portfolio and automate their debt collection, recovery and restructuring processes, in order to make its application landscape complete and future proof. The Company CKV is an unlisted, independent, stable, Belgian niche bank that has been active throughout Belgium since 1956 […]

Can an NPL “wave” be avoided on 2022?

3 February 2022

Have you heard about the NPL tsunami? Different players in the NPL market have expressed their worries about rapidly worsening bank asset quality and an ensuing ‘NPL tsunami’ from the COVID pandemic. Those challenges have not materialised so far and one reason for keeping them on hold is clearly the policy mix that governments have […]

The non-performing loans directive is now live

28 January 2022

On 24 November 2021, the European Parliament approved the final version of Directive 2021/2167 which addresses high levels of non-performing loans held by banks in the European Union (the NPL Directive). The Directive has been under discussion since 2018. The accelerated legislative process to approve the Directive last November could have been triggered by the […]