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UAE: Salary advance, remit and pay later options coming soon for unbanked residents

The service helps reduce reliance on high-interest credit, easing the financial burden for mid and low-income individuals

Published: Mon 30 Dec 2024, 9:56 PM

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UAE residents can soon access salary advances, remit money, and pay in instalments to address their immediate financial needs. This service is a result of a partnership between Al Ansari Financial Services, the parent company of Al Ansari Exchange and the fintech firm Halan.

The service is primarily aimed at underbanked and unbanked residents and offers an opportunity to reduce 'reliance on high-interest credit options', helping mid and low-income salaried individuals reduce their financial burden.

Many UAE residents avail themselves of salary-in-advance facilities offered by all the major banks in the country. As reported by Khaleej Times earlier, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Ras Al Khaimah Bank, United Arab Bank, Ajman Bank, Sharjah Islamic Bank, and Emirates NBD offered their customers advance salary facilities. Dubai Islamic Bank discontinued this facility earlier this year.

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Mohammad Bitar, deputy group CEO of Al Ansari Financial Services, said the agreement enables financial independence and fosters greater inclusivity.

"We are providing a practical and ethical solution to support the financial well-being of our customers, especially those who have limited access to traditional banking services," he said.

Omar Ramadan, managing director of Halan GCC, said the agreement ensures that this solution not only meets the needs of the underbanked but also sets a new benchmark for financial accessibility and inclusion in the region.

The send now, pay later (SNPL) service by Al Ansari Financial Services will allow customers to instantly send a larger amount of money to family members and repay it in instalments over time, further enhancing their financial capabilities.

The UAE residents’ remittances amounted to $38.5 billion in 2023, the second highest after the US ($85.5 billion), according to the World Bank.

Launched in December 2024, Halan provides a salary advance solution for employees and businesses. It aims to address the needs of the UAE's over 3.7 million underbanked expatriates, who often face challenges accessing traditional banking services.

Halan Advance has already gained traction in the UAE, with over 40,000 customers acquired since April 2024. The company plans to reach 250,000 customers and disburse Dh350 million in loans by the end of 2025.

"The response to Halan Advance has been fantastic," said Omar Ramadan, managing director of Halan GCC.

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