Brief

UAE lenders turn to alternative data to widen credit access

Fintechs and banks are expanding credit underwriting with alternative data, while stressing consent and transparency.

By Felo News Desk · Published Wed, 07 Oct 2026 02:34:05 GMT

Lending in the United Arab Emirates is moving beyond traditional credit scores as fintechs and banks adopt alternative data sources, industry leaders said at the Banking Innovation & Technology Summit in Dubai on Tuesday.

What happened

Speakers at the summit explained that lenders are now using data from customers' transactions, remittances and the Wage Protection System (WPS) to gauge financial behaviour, repayment willingness and ability. The shift aims to provide faster, forward‑looking decisions for borrowers who lack formal credit histories.

What the reports add

According to Khaleej Times, ABHI’s CEO Omair Ansari highlighted that 99.9% of the fintech’s customers have no credit score, prompting the firm to pull data from remittance providers and the UAE’s WPS to underwrite loans. Valu’s founder Walid Hassouna contrasted this with the company’s 2017 experience in Egypt, where reliance on credit‑bureau scores meant lenders only looked backward at past borrowing.

What was said

“Every fintech dreams of becoming a bank, and all roads lead to lending when it comes to fintech because that's where the margin is,” Ansari told Khaleej Times.

“We would use credit scoring. The credit bureau was essentially lending to customers who had borrowed before through official lines. So, in reality, we were not adding anything. We were just looking backwards,” Hassouna said.

How it came about

The move follows broader regional trends toward data‑driven finance, as seen in Felo News’ recent coverage of Emiratisation targets in the private sector and the rise of AI‑assisted credit decisions in South Africa. Those pieces illustrate how firms are leveraging new data sources to meet regulatory goals and improve inclusion.

Key facts

• UAE lenders are using transaction, remittance and payroll data to assess borrowers without traditional credit scores. (khaleejtimes.com)
• ABHI reports that 99.9% of its customers lack a credit score and rely on alternative data for underwriting. (khaleejtimes.com)
• Valu’s founder noted that earlier reliance on credit‑bureau scores in Egypt focused only on past borrowing. (khaleejtimes.com)

Sources

• [1] khaleejtimes.com — originally reported as “UAE lending moves beyond credit scores to assess borrowers, industry leaders say”