loans sector in Ukraine is developing rapidly, but fast growth does not mean
high quality of the market. The number of new players increases from year to
year. However, although demand is ahead of supply and the potential volume of
the market is estimated at billions of dollars, not all companies will be able to
work effectively on it. What trends need to be considered in 2019 in order to
technologies and individual approach to the client
The payday loan business definitely is moving
online. In Ukraine, Internet penetration rates are relatively low – 65% of the
population regularly use the worldwide network and 57% use smartphones.
Nevertheless, these numbers are growing rapidly, as is the demand for online
financial services. So, according to Google, the number of search requests in
the category “loans and borrowings” in 2018 increased by 30%, while mobile
traffic in this category exceeded 55%. This means that the share of online
companies will increase and the main platform for communication with the client
will be a smartphone.
Moving to online means more active use of the
benefits that mobile and cloud technologies provide, as well as artificial
intelligence for data processing. This will allow lenders to analyze in detail
the behavioral and transactional models, as a result, to develop a more
individual approach to each client.
Not all market participants in Ukraine today
are willing and able to work correctly and effectively with Big Data, but this
is where the potential for sales growth and investment attraction lies.
Powerful analytics allows you not only to assess the current state, but also to
make correct predictions for the future. This is important both for work with
borrowers and investors.
More than loans
The growth of online lending today has already
reached the point where a high-quality technical platform is not enough. Of
course, the speed of data processing and making the decision to issue a loan is
still a major advantage. But simplicity and speed is not an extra bonus, but an
In this race, those will win who find a way to
offer more than “just money”. There are so many participants on the
market that simple price level competition does not work. In 2019, companies should
try to offer the client unique advantages – it can be anything from credit
cards to personal financial advice.
One of the main trends: online lenders are
feeling the need to develop long-term relationships with consumers. Simple
transactional business models are no longer relevant, because innovations in
this area have already surpassed the limits of standard credit terms. The cost
of attracting and retaining customers gives rise to a business model in which
lenders can offer growing credit lines, instead of having to go through the
loan process from the very beginning every time.
is a key asset
Banks have adopted online tools for work long ago
and now entering payday-style online lending space. In 2019, this trend will
only intensify. Banks will continue to enter the online payday loans market by
implementing digital apps. Their well-established reputation will allow them to
successfully compete with alternative lenders who already work in this
That is why the question of reputation is
relevant to the field of microcredit. The level of confidence to the
microfinance sector is low, because of an inadequate degree of financial
literacy of the population and methods of working with problem loans. But the situation
is changing now and online lenders should Integrate financial education tools in
We need to find ways to create additional
value for our customers, explore new niches and create alternative loan
products. The main trends are focused, on the one hand, on maximum product
personalization, and on the other hand, on universality, the ability to be a
single financial instrument for solving problems.