To achieve financial security, it is important to track your income and expenses. While small expenses may initially seem insignificant, they can accumulate over time and become a significant burden if left unchecked. So, what’s the solution? The answer is simple, get your finances in order.
Managing personal finances can be overwhelming, but there are apps available that can simplify the process. One such app is Yallacompare, developed by skilled mobile app developers in Dubai. Especially amid the COVID-19 pandemic, when the economy is facing challenges, many people are looking for ways to save money. It’s no surprise that a large number of millennials are turning to budgeting apps for assistance.
With the increasing popularity of these apps on people’s smartphones, the market for Financial Comparison App is experiencing unprecedented growth. This presents an opportunity for you to enter the market and make your app even more accessible to users. To help you navigate this challenging period, let’s explore how pioneering apps like Yallacompare have achieved success.
Yallacompare is undoubtedly one of the leading finance comparison platforms in the Middle East. They secured $8 million in funding in January 2019 to further expand their business. In this article, we will take an in-depth look at their business model to understand the key factors behind their impressive growth.
YALLACOMPARE: Pioneer New Concept on Financial Comparison App
Founded in 2011 by Jon Richards and Samer Chehab, the Yallacompare app has undergone a journey of ups and downs to become what is arguably the model of a successful tech startup. It all began when Jon identified a gap in the market for easily accessing information to make informed decisions about financial products such as loans, credit cards, and other banking services.
Like any smart entrepreneur, Jon chose to validate his idea before diving in. He started by blogging and sharing valuable information, which quickly propelled him to the top of Google’s search results for relevant keywords. With a surge in organic traffic, thousands of people were eagerly seeking more information on how to apply for banking products. This demonstrated that the problem they aimed to solve was indeed prevalent, and customers were struggling to find relevant financial information.
The need for a solution became even more apparent when banks themselves reached out to Yallacompare, recognizing the enormous potential for collaboration. This motivated Yallacompare to leverage the expertise of the best app development team in Dubai and transition into a financial product comparison model, paving the way for revenue generation. In 2019, they gained traction and began their journey towards achieving a solid “product-market-fit,” impressing investors three years after their establishment.
Furthermore, Yallacompare successfully acquired customers and generated revenue, carving out a lucrative niche for themselves. They closed their first round of funding at $500K and, a year later in 2015, secured their Series A funding of $3 million.
Current Core Operations
Currently, Yallacompare operates as a reliable platform that bridges the gap between users and financial service providers, specifically in the field of loans. They offer a comprehensive range of banking services, including car loans, personal loans, commercial loans, SME loans, home loans, and more. Moreover, they have made a significant impact by pioneering insurance aggregation in the UAE.
Yallacompare has become a one-stop destination where users can conveniently compare and purchase various types of insurance, such as car insurance, health insurance and life insurance. All of these offerings are available through their user-friendly platform, allowing individuals to access and obtain insurance with ease.
Customer Relationship and Target Audience
When considering the business and the products offered by yallacompare, it is crucial to focus on the target market. In terms of demographic distribution, the primary target segment comprises seasoned professionals who have a regular income, as obtaining a bank loan without a steady salary is highly unlikely. In addition to demographics, psychographic distribution plays a significant role in identifying potential customers. Yallacompare may be interested in customers who exhibit the following characteristics:
Open to Good Deals
These customers show an interest in platforms like Groupon, Cobone, and similar offerings.
They prefer to gather information and read reviews before making a choice. Platforms such as Trivago, Tripadvisor, and G2 are likely to attract their attention.
Familiar with Online Purchasing
This segment is comfortable with online shopping and is open to an easy educational and onboarding process. They may have experience with e-commerce websites like souq.com, Namshi, Amazon, and others. Considering the emerging market, the supply side of Yallacompare’s business model consists of insurers and banks. While the platform is free for users to access, Yallacompare generates its profits from the supply side, building partnerships and collaborations with these financial institutions.
Customer Channel Strategy
Did you know that Yallacompare attracts approximately 250,000 monthly site visitors? Nearly half of their website traffic is generated through search engine optimization and content marketing efforts. Surprisingly, 60 per cent of their insurance business comes from organic traffic. So, what’s their secret to success?
One of the factors contributing to Yallacompare’s success is Jon’s background in digital marketing, which has enabled them to excel in content creation. They provide socially relevant content to educate users on topics such as VAT, resulting in nearly 200 shares. Additionally, they effectively engage their target audience through interactive content on social media channels, like a Halloween video that garnered over 15,000 views.
In addition to organic channels, Yallacompare also reaches customers through various paid channels, including display ads, Google Ads, radio, and Facebook Ads. They understand the importance of diversifying their marketing efforts to reach a wider audience.
Furthermore, Yallacompare leverages events and sponsorships, such as participating in PR activities and attending conferences like the Step conference. They have been featured on sites with massive audiences, such as The National, further increasing their visibility and reach.
User Value Proposition
When you need a home loan, you likely find yourself searching multiple banks to compare interest rates, loan amounts, required documents, and the timeframe for receiving funds. Your ultimate goal is to make informed decisions and secure the best possible deal. However, you may be confused about where and how to start.
Traditionally, this process would involve visiting each bank’s website, searching for the necessary information, making calls, and waiting for callbacks from agents. But with yallacompare, the entire process is streamlined with just a click. By selecting the car loans option, you instantly gain access to numerous loan choices. This allows for quick comparisons to find the most suitable bank to meet your needs. Simply enter your details, and a representative from the bank will contact you.
The value that Yallacompare provides is evident in the significant amount of time and effort it saves users, surpassing expectations. But that’s not all. Thanks to their established relationships with providers, they also offer users exclusive rates that can lead to savings of up to 20%. For example, if your health insurance would typically cost you 10,000, Yallacompare may help you secure it for 7,600. That’s a substantial difference! Ultimately, this gives users the option to save money or even consider higher coverage plans.
Yallacompare’s value proposition lies in simplifying the loan comparison process, saving users time and effort, and offering exclusive rates that result in significant savings.
Value Proposition for Suppliers
For suppliers on the platform, partnering with Yallacompare provides significant benefits, particularly in lead generation at a lower cost. By leveraging the platform, suppliers can minimize their customer acquisition expenses, creating clear value for their institutions. In fact, experts predict that financial aggregators such as Yallacompare could potentially emerge as the primary sales platform for these institutions down the road.
Furthermore, due to the vast amount of data and high traffic volume on the Yallacompare platform, suppliers can collaborate to develop customized products that offer even greater value to users. This strategic partnership allows suppliers to tap into a broader market and enhance their product offerings.
Final Structure & Key Resources
Yallacompare has built its insurance platform from scratch, which required significant investments in technology and automation. This level of investment makes the startup more defensible, as replicating such a substantial financial and time-intensive venture is challenging. Additionally, Yallacompare has made investments in a call centre to support the growing demand and customer base.
Geographic expansion to solidify its leadership position in the MENA region necessitates exclusive investments in market research, management teams, and strategic planning.
Marketing and Branding
Recently, Yallacompare underwent a rebranding process, transitioning from its previous name, compareit.com. This rebranding effort required a significant investment but contributes to the startup’s positioning, especially when entering new markets. Yallacompare also invests in marketing efforts to educate customers and raise awareness about the benefits of comparing financial products.
Strategic partnerships, such as the collaboration with the Smiles App by Etisalat, further raise awareness about insurance products for consumers and emphasize their affordability. Yallacompare continues to grow, it invests in hiring the necessary talent to meet market demands and maintain its competitive edge.
YALLACOMPARE Revenue Streams
Yallacompare generates revenue through two main sources
Banking product comparison
Yallacompare receives payments from banks for facilitating the comparison of their financial products. Clients typically take three months to pay their invoices, requiring adequate cash flow management during that period.
Selling insurance products
The sale of insurance products through the platform represents approximately 50-60% of Yallacompare’s monthly revenue and has been successful. Yallacompare accounts for over 76% of the online insurance policies sold in the complete GCC region.
The development cost of an app like Yallacompare typically ranges between AED 35,000 to AED 50,000. However, it’s important to note that estimating the cost without knowing the client’s specific requirements can be challenging. Once the app development company understands the app’s expectations, a more accurate development cost estimation can be provided.
Now, you might wonder why a simple comparison app development comes with this price tag. Let me provide you with some insights to better understand it. Developing a product comparison app involves various sections, each with numerous sub-sections. Paying attention to these points is crucial when estimating the development cost:
- Product management
- User management
- Revenue management
- Notification module
- Service module
- Report generation
- Information updates
- In-app communication
- Product uploads
- Online support
- Product review submission
- Product selection
- Account verification
- Social media integration
- Browsing items
- Product details
- Product listing
In addition to the mentioned functionalities, the development cost of creating an app like Yallacompare depends on factors such as the platform (Android and iPhone), app customization, number of screens, UX/UI design, and complexity level. It is also crucial to hire a team of highly experienced mobile app developers to ensure the success of your finance comparison app.
Yallacompare’s vision of becoming a major player in the financial comparison industry in the MENA region, while educating clients on proper financial planning, required meticulous planning and informed decisions from the outset. They validated their idea by acquiring customers and generating revenue, ensuring the problems they aimed to address were real.
Their open-mindedness and continuous learning about customer needs led them to be the first to introduce the highly successful insurance aggregator and platform payment business model. As for the future, it may involve leveraging machine learning to provide personalized products, automating the financial product purchasing life cycle, or even developing their in-house insurance products. Patience is key in this game.
For now, partnering with the right app development company in Dubai is crucial as Yallacompare continues its growth across the MENA (Middle Eastern and North Africa ) region.
In summary, the fair and square value of developing a finance comparison app, similar to Yallacompare, depends on several factors, including the app’s feature set, platform (iOS or Android), security measures, and personalization required. It also considers the person-hours needed and the time required to create the final product.
By consulting industry experts, it’s possible to get an estimated ballpark figure for the development cost of a finance comparison app like Yallacompare.