NEWS
IBS Journal January 2018
11
Consumers turn to digital lenders as traditional banks lose market share
U
K consumers are increasingly using digital loan providers and steering away from traditional banks, according to a research by Zopa, which highlights how loan sales via price comparison sites doubled in the past two years.
The data shows that over 113,000 loans were sold through price comparison sites in the 6 months to April 30 2017, representing a 139% increase compared to the same period in 2015. The overall unsecured personal loan market grew by roughly 20% in the same period.
Zopa says digital lenders are providing a more seamless and personalised loan process, as well as better value for products, taking a larger and larger share of the market.
“Consumers are no longer content to sit around waiting for their traditional bank to offer what they need,” commented Jaidev Janardana, Zopa’s CEO. “Instead, consumers are heading online to find products and a customer experience similar to what they receive from other businesses in the digital economy.
“Finance providers which put customers first when designing their products and services are already winning market share from traditional banks. And that’s set to continue with the arrival of Open Banking in January giving customers more control of their data. This will make it easier for consumers to choose the best financial products for them, and manage their accounts in a finance app of their choosing, regardless of who provides the underlying product.”
UAE leads fintech innovation in the MENA with positive predictions
F
intech start-ups in Dubai have raised over $100 million (Dh367 million) in the MENA region in the last 10 years, with numbers expected to double by 2020, according to an
industry expert.
“105 fintech start-ups were launched in the region in 2016, and it will rise to 250 by 2020. The region is small when compared to the global proposition in fintech funding, which translates to one per cent,” Alan Kelly, commercial and strategy director at Informa Middle East, said, speaking at the preview event of Finovate Middle East.
Younis Al Khouri, undersecretary of the Ministry of Finance, confirmed the Ministry’s support for financial innovation: “We have seen fintech enter the popular consciousness in a big way this year due to developments in mobile payment technology, and the introduction of blockchain technology that have ignited the public interest and pushed the sector’s growth,” he said.
According to Al Khouri, fintech is predicted to grow by 270% in the Middle East by 2020. In the UAE, the combination of accelerators, rising investments and cross-industry partnerships is likely to boost fintech development in the near future.
South Korea considers crypto- currency trading ban
T
he South Korean Ministry of Justice is rumoured to be planning a ban on all types of cryptocurrency trading, according to a post by Nikkei quoting a Ministry official. This comes as a shock as Korea has become one of the largest cryptocurrency markets in the world, but the move is being considered in order to protect retail investors from potential scams, according to the official.
On statement published on Monday, Choi Jin-seok, prosecutor at
the Justice Ministry in charge of cryptocurrency-related crimes, stated: “We do not rule out an option that bans trading of [all] cryptocurrencies. We acknowledge many problems stemming from the trade and are studying how to control them.”
The Justice Ministry’s plan “will almost certainly face opposition inside the government”, as they try to regulate cryptocurrencie. For instance, Korea’s National Tax Service is devising a way to enforce income taxes on cryptocurrencies.
www.ibsintelligence.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
