With banks aggressively foraying into car financing and SME lending, there will be competitive pressure on finance and leasing companies, says Mohammed Redha A Jawad, CEO of Taageer Finance. Excerpts form an interview with Muhammed Nafie

What do you think about the performance of non-banking finance industry in the coming years?

The general atmosphere for the finance and leasing companies (FLCs) presents a rather challenging outlook. With the pressure from banks who have aggressively forayed into car financing and SME lending, the competitive pressure on FLCs will continue during the year 2018 as well.

FLCs may cautiously grow their loan books based on improvement in the overall economic scenario. The industry will be moving forward to improve its overall market share while the overall outlook remains somewhat positive. However, further consolidation in the industry cannot be ruled out.

How was Taageer Finance’s financial performance in FY 2017?

Taageer Finance reported a growth of 9.90 per cent in the total revenues 2017 and the PAT grew by 5.12 per cent despite stiff competition in the industry from peers and the banks as well.

Can you give us a brief on the company’s major milestones during the year?

Taageer Finance is the first non-banking finance company to launch the new customer service electronic delivery channel. The mobile app was successfully launched at the ceremony held in one of the hotels in Al Khuwair which was attended by our valued customers, dealers and the Press team. During the year 2017, the company also re-branded some of its branches to provide better customer service at branches.

What is Taageer Finance’s outlook for the future? Does the company have a plan to expand into new product areas?

The outlook for the future is positive despite economic challenges. Taageer Finance will be cautiously moving forward to introduce products and to grow its business activities.

What about your foray into digital platform and your plans to enter the credit card business?

Taageer Finance is the first company to have successfully launched its Mobile App for its customers. We will be working on enhancing IT platform. We will be soon launching our White Label Credit Card for our customers.

What is the status of your non-performing loans and loan disbursement?

The stress from non-performing loans continued in the year 2017 across the FLC industry. Pro-active measures like meeting customers in advance and providing solutions for their immediate needs is helping in controlling and timely monitoring of NPA’s. We are sure with the improvement in the oil prices and addition resource allocation by the government will reduce the default of the borrowers across the banking and non-banking finance industry.
We are confident that with the help of close monitoring mechanism, we would be able to control the non-performing loans.