Crowdlending Market Study in KSA for Daralqias

Client Overview

Daralqias is a leading financial services company in the Kingdom of Saudi Arabia (KSA), with a focus on introducing innovative financing solutions to the market. ​As part of their strategic initiative to explore and develop crowdlending platforms, Daralqias sought a comparative study of business models and revenue streams across debt-based and non-debt-based crowdlending platforms in KSA, the US, and the EU​

Our Approach

KSA Market

Assessed the emerging crowdlending market in KSA, driven by regulatory changes promoting fintech and crowdfunding. Analyzed revenue models such as transaction fees, origination fees, and late payment penalties​

EU Market

Evaluated leading European platforms such as Funding Circle and Bondora, focusing on revenue streams such as loan servicing fees, interest margins, and platform usage fees​

Telephonic Interviews

Conducted 25 telephonic interviews with key stakeholders in the crowdlending industry, including platform operators, financial experts, and regulators across KSA, the US, and the EU.​

Face-to-Face Interviews

Engaged in 15 face-to-face interviews with financial services executives and fintech entrepreneurs in KSA to gather in-depth insights on the challenges and opportunities specific to the local market.

Industry ​Expert Panels

Organized 10 industry expert panels to discuss trends, challenges, and the future of crowdlending in the US and EU, and how these trends might translate into the KSA market​

Impact We Created

• Recommended adopting a revenue model based on loan origination fees (typically 1-5% of the loan amount) and servicing fees (around 1% per annum), similar to successful models in the US and EU​
• We advised the client to explore hybrid crowdlending models that offer both debt-based and equity-based financing. This strategy could capture a broader market segment, including SMEs and startups​