Digitisation is perpetually transforming industries, redefining how we shop, travel and consume entertainment. Yet, applying for a loan still feels like a process indelibly stuck in the past, burdened by paperwork, endless documentation requests, and prolonged approval cycles.
In the GCC, loan applications remain slow, inefficient and misaligned with the seamless, real-time digital experiences that consumers and businesses have come to expect and rely on. Both consumers and businesses recognise that it doesn’t have to be this way. Lending should be an invisible process, seamlessly integrated into everyday transactions, as effortless as paying for a coffee or hailing a ride.
The disconnect is clear: while most transactions are completed with a single tap, lending remains cumbersome, creating unnecessary friction for both individuals and businesses.
A Shift That’s Long Overdue
What if financing occurred seamlessly in the background, without friction or disruption?
Imagine applying for a loan without ever filling out an application form. No paperwork, no waiting, no need to justify creditworthiness, because financial profiles are already known and verified in real-time. The funds you need appear instantly, precisely when required. No approval delays, just pure financial enablement.
The gap between this possibility and today’s reality is more than an inconvenience, it represents a fundamental inefficiency that restricts financial access and slows economic growth.
Consumers expect financial solutions that match the convenience of their everyday digital experiences, while businesses, particularly SMEs, require faster more adaptable financing to sustain and expand their operations.
Yet traditional lending models have failed to keep pace. They remain reliant on outdated collateral-based assessments and rigid approval processes that fail to meet modern demands. This is no longer a question of technology; it's a question of adapting to a new reality where financial services must be as seamless as the transactions they support.
This is not a futuristic vision. The technology exists today. Open banking, embedded finance, and AI-driven credit decisioning have made seamless, invisible lending possible. The question is: are banks and lenders prepared for this shift? Or are they allowing fintechs to take the lead while they cling to outdated models?
We’ve Seen This Before and We Know Who Wins
We all know who’s winning the BNPL race. Traditional lenders have already lost ground as fintechs identified the gap in consumer lending and moved fast, continually redefining consumer credit experiences with instant, embedded financing at checkout that has left traditional lenders playing catch-up. The same shift is now poised to reshape SME and personal financing. Banks that fail to adapt risk falling behind.
The GCC has a unique opportunity to leapfrog outdated lending models and set a new global standard.
SME Lending: A Perfect Use Case for Invisible Finance
One of the biggest opportunities to transform lending lies in SME financing: a space where traditional banking models have fallen short. SMEs are the backbone of the GCC’s economy, yet they receive only 3% of total bank financing, leaving a $250 billion financing gap in the region. This gap isn’t just a missed opportunity for SMEs, it’s a missed revenue stream for banks.
The Problem? Traditional Lending Models No Longer Work
- Collateral-based lending models exclude SMEs that cannot meet strict collateral demands.
- Lengthy approval processes take weeks, delaying essential funding.
- Perceived risk results in limited access to credit for SMS with insufficient credit history.
But what if we could move beyond collateral-based lending and instead tie financing to real-time business performance?
That’s exactly what POS financing does.
How POS Financing Works
POS financing leverages real-time sales data from point-of-sale (POS) systems to assess a business’s financial health and automate repayments based on actual revenue. This approach removes friction from the lending process while reducing risk for lenders.
For Banks and Lenders:
✅ Expand financing portfolios – Tap into a broader SME market with a scalable lending model.
✅ Mitigate risk – Reduce defaults through sales-based repayments that adjust dynamically.
✅ Streamline approvals – Enable faster financing processes, cutting approval times from weeks to days.
For SMEs:
✅ Faster access to funds – No more waiting weeks for approvals—financing happens in real-time.
✅ No collateral required – Lower barriers to entry, empowering more businesses to qualify.
✅ Reinvestment opportunities – SMEs can access capital precisely when they need it, fuelling growth.
Why POS Financing Matters
POS Financing is more than a product—it’s a transformative approach to bridging the financing gap:
- For Banks: A scalable, low-risk way to diversify portfolios.
- For SMEs: Access to the resources they need to grow and thrive.
Real-World Impact: Tarabut’s Role in Transforming SME Financing
Across the GCC, Tarabut is pioneering POS financing solutions in partnership with leading financial players:
🇸🇦 Saudi Arabia: SMEs face a financing gap exceeding 300 billion SAR. Tarabut’s partnership with Geidea, Saudi’s leading payments provider, explores how POS data can unlock financing opportunities for underserved businesses. This aligns with Saudi Vision 2030, which prioritises small business empowerment and economic diversification.
🇧🇭 Bahrain: SMEs contribute almost 30% of GDP, yet financing barriers remain high. Tarabut has partnered with Eazy Financial Services (EazyPay) to integrate POS systems with analytics and credit decisioning engines, making lending faster and more accessible.
This isn’t theory—it’s already happening. These solutions are already reducing financing barriers, accelerating decision-making, and driving economic progress.
The Future: Making All Lending Invisible
POS financing is just the beginning. The GCC must go beyond digitising legacy processes—it must reimagine lending altogether. This means embedding financing across multiple touchpoints:
🔹 Payroll lending – Imagine employees accessing micro-loans instantly, embedded in their salary disbursement.
🔹 B2B supply chain financing – Vendors receiving seamless working capital financing based on real-time invoice flows.
🔹 Consumer financing at checkout – Personalized loan offers appearing at the exact moment of purchase, tailored to the customer’s financial profile.
This isn’t just about making lending faster—it’s about making it effortless. Banks that move first will own the future of lending. Those that hesitate will watch fintechs take the lead.
Time to Fix It: Tarabut as the Trusted Partner
The GCC’s financial system is at a crossroads. The winners will be those who embrace embedded finance and invisible lending now—not five years from now.
At Tarabut, we are building the infrastructure that makes this future a reality. We empower banks, fintechs, and financial institutions with the tools to transform lending, unlock new revenue streams and deliver seamless financial experiences for consumers and SMEs alike.
Ready to Unlock New Opportunities with POS Financing and embedded lending?
Explore how POS Financing can unlock growth for your business or bank.
