Digital Lending Platforms Market Trends and Analysis by Region, Deployment, End Use and Segment Forecast to 2030

Accessing the in-depth insight from the ‘Digital Lending Platforms’ report can help you:

• Make informed decisions about market entry, technology adoption, and project planning
• Identify your competitors’ capabilities to stay ahead in the market
• Identify promising segment analysis (type, deployment, and end use), growth trends, regional trends, and markets to expand your regional presence, service portfolio, or successful investment
• Anticipate expected changes in demand and adjust your business development strategies
• Identify ongoing potential projects across regions

How is our Digital Lending Platforms report different from other reports in the market?

• The report presents in-depth market sizing and forecasts at a segment level for 13 countries, including historical and forecast analysis for 2020-2030 for market assessment.
• Detailed segmentation by Type, Software, and Deployment.
• The report also highlights segmentation at End Use level – Banks, Credit Unions, Peer-to-Peer Lending, and Savings & Loan Associations, Others.
• The report offers an industry value chain analysis and the drivers and challenging factors impacting the digital lending platforms market. The report further presents brief technological, regulatory, and macroeconomic trends of digital lending, which is expected to help stakeholders to understand and identify the shifts in the industry.
• The growth innovation matrix included in the report divides the market players into four categories i.e., flagbearers, contenders, specialists, and experimenters, which will help the value chain participants to understand how competition is performing based on their revenue growth and R&D efforts.
• Competitive profiling and benchmarking of key players in the market to provide a deeper understanding of industry competition

We recommend this valuable source of information to anyone involved in:

• Digital lending platform companies
• BFSI establishments
• Digital payment companies
• Regulatory agencies
• Management consulting firms
• Equity partners
• Venture capital firms

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Digital Lending Platforms Market Overview

The global digital lending platforms market will be valued at $11.5 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 22.1% over the forecast period. The rising demand for digital channels, faster loan approvals and disbursements, and increased investments in emerging technologies are anticipated to drive the growth of the digital lending platforms industry. The advantages offered by these platforms, such as quick decision-making, optimized lending process, conformity with regulations and guidelines, and customer convenience, are expected to drive market growth.

The COVID-19 pandemic accelerated the use of digital lending platforms as individuals and businesses sought convenience and contactless access to funds. The pandemic also increased the need for more financing, more quickly, to individuals and firms that were difficult to assess. New digital lenders, such as OakNorth and Starling in the UK, with limited legacy, were able to modify workflows and dispense government-backed loans more quickly and securely, operating at a critical proof point and moment of truth. The limitations on physical interactions and the need for quick financial support prompted a surge in the adoption of digital lending driving its growth during the crisis.

Digital Lending Platforms Market Outlook, 2020-2030 ($ Billion)

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The increasing demand for digital lending services creates opportunities for platform providers to raise capital to meet this demand and expand their lending activities. Advancements in data analytics and risk assessment techniques associated with digital lending platforms enhance investor confidence, attracting more funding to support the industry’s growth. For instance, in April 2023, DMI Finance, a digital lending provider, raised $400 million in their latest private equity funding round, led by MUFG Bank. Such investments encourage startups in the digital lending realm to launch new service offerings. In March 2021, Presta, an end-to-end digital lending platform that develops and accelerates the loan origination procedure launched itself after raising $3.3 million in pre-seed fundraising.

The digital lending platforms market is expected to be further fueled by significant investments in emerging technologies such as machine learning (ML), artificial intelligence (AI), analytics, and blockchain. ML and AI enable lenders to automate loan underwriting processes, analyze large data sets for risk assessment, and personalize loan offerings based on individual borrower profiles. Blockchain technology ensures secure and transparent transactions, enhancing trust and reducing fraud in digital lending platforms. Additionally, mobile technologies facilitate convenient access to lending services, enabling borrowers to apply for loans and track their applications, on the go. Big data analytics allows lenders to gain valuable insights into borrower behavior, creditworthiness, and market trends. Similarly, robotic process automation streamlines loan processing, reducing manual errors and improving operational efficiency.

Digital Lending Platforms Market Segmentation by Type

The digital lending platforms market by type is bifurcated into software and services. The services segment captured the largest revenue share in 2022 and is expected to register faster growth during the forecast period. This is attributable to the rising inclination towards customized digital lending software development and its annual maintenance. Furthermore, the growth in digital lending has led to a parallel increase in the demand for consulting services in this industry. These services assist financial institutions, fintech companies, and other stakeholders in navigating the complexities of digital lending. They provide expertise in areas such as strategy development, technology implementation, regulatory compliance, risk management, and process optimization. The rising need for specialized knowledge and guidance in this evolving field has fueled the growth of consulting services, thus driving the services segment.

Digital Lending Platforms Market Share by Type, 2023 (%)

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The software segment is anticipated to observe a CAGR of over 21.0% from 2023 to 2030. Within the software segment, the loan origination software segment captured the largest revenue share in 2022. This growth is attributed to its ability in automating and streamlining the loan application and approval processes, resulting in faster turnaround times, improved efficacy, reduced manual errors, and enhanced borrower experience, meeting the increasing demand for digital lending solutions and driving the digital transformation of lending institutions. Moreover, the analytics & insights software segment is expected to witness the fastest growth during the forecast period. Lending analytics enable lenders to perform client segmentation analysis and improve client acquisition.

Digital Lending Platforms Market Segmentation by Deployment

The on-premise deployment segment dominated the global digital lending platforms industry in 2022. Financial establishments are choosing on-premise deployment to reduce the risk of cybercrimes following the awakening number of data breaches and cyberattack occurrences. On-premise platforms empower organizations to have full control over their records and determine the system upgrades and transformations. The total cost of ownership (TCO) of on-premise digital lending software includes upfront costs such as software licenses, hardware infrastructure, implementation, and customization expenses. Additionally, ongoing costs encompass maintenance, upgrades, security measures, and IT personnel required for system management and support. While on-premise solutions offer control and customization benefits, the TCO tends to be higher compared to cloud-based alternatives, as it entails capital investment, ongoing maintenance, and operational expenses associated with managing the infrastructure and software in-house.

Digital Lending Platforms Market Share by Deployment, 2023 (%)

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The cloud segment is expected to witness the fastest growth in the digital lending platforms market from 2023 to 2030. Deployment of cloud lending software provides scalability and flexibility, allowing lending institutions to quickly adapt to changing demands and scale their operations without the need for significant hardware investments or infrastructure changes. Cloud deployment reduces the upfront costs by following a subscription-based or pay-as-you-go model, enabling lending establishments to allocate their resources efficiently. Besides, cloud software facilitates seamless collaboration and accessibility across different devices and locations. Additionally, cloud-based solutions often provide regular software updates and maintenance, ensuring that lenders have access to the latest features and enhancements without additional effort.

Digital Lending Platforms Market Segmentation by End-use

The banks’ segment will capture the largest revenue share of the digital lending platforms market in 2023. This is attributable to the growing emphasis of banks on digitalizing their financial services and financial inclusivity. Banks typically have a large customer base, financial resources, and established infrastructure, making it easier for them to integrate and adopt digital lending platforms. Moreover, banks often have more stringent regulatory requirements, and digital lending platforms can help them ensure compliance and automate processes, reducing the risk of errors and noncompliance. Furthermore, banks have a long-standing reputation and trust with customers, and offering digital lending services allows them to leverage their brand recognition.

Digital Lending Platforms Market Share by End-use, 2023 (%)

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Peer-to-Peer (P2P) lending segment is expected to register the fastest growth from 2023 to 2030 due to the inherent nature of their business model. P2P lending relies on connecting borrowers directly with individual investors through an online platform, making digital lending platforms an ideal fit for their operations. These platforms provide the necessary infrastructure and technology to facilitate loan origination, credit assessment, and borrower-investor matching seamlessly and efficiently. P2P lenders leverage digital lending platforms to automate processes, ensure transparency, streamline loan distributions, and provide a user-friendly experience, to both borrowers and investors. Additionally, digital lending platforms enable P2P lenders to reach a broader audience, expand their lending capabilities, and offer competitive interest rates, making them a preferred choice for P2P lending institutions.

Digital Lending Platforms Market Analysis by Region

Asia Pacific is expected to dominate the digital lending platforms market share and growth in the region is attributed to the growing number of fintech businesses and the rising internet penetration rate. The region has a large population with a high percentage of unbanked or underbanked individuals, creating a significant market demand for alternative lending solutions. Digital lending platforms provide accessible and convenient options for these individuals to access credit.

Regulatory frameworks in some Asian countries have been favorable toward promoting digital financial services and innovation. For instance, the Monetary Authority of Singapore (MAS) has introduced a regulatory framework, The Singapore Variable Capital Company (VCC), that allows for the establishment of collective investment schemes, including digital lending platforms, under a single corporate structure. This framework provides regulatory clarity, flexibility, and operational efficiencies for digital lending platforms operating in Singapore. It has also implemented the ‘Fintech Regulatory Sandbox’ which allows fintech companies, including digital lending platforms to test their innovative business models in a controlled environment. This has created an environment that encourages the growth and expansion of digital lending platforms, attracting both, local as well as international players.

Asia-Pacific Digital Lending Platforms Market Share by Country, 2023 (%)

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Digital lending is also experiencing significant growth in the US and European markets. The US has a highly developed and competitive financial services sector with a strong credit economy, making it apt for innovation and disruption. Regulatory advancements such as the JOBS Act and the OCC Fintech Charters have created a supportive regulatory framework for digital lending platforms. These regulations promote innovation, ease regulatory burdens, and encourage competition in the lending industry. Similarly, in Europe, the regulatory frameworks have been evolving to encourage fintech innovation and promote digital financial services. The European Union has introduced initiatives like the Payment Services Directive 2 (PSD2) and the open banking framework, which facilitates secure data sharing and promotes competition in the financial sector.

Digital Lending Platforms Market – Competitive Landscape

The global digital lending platforms market is in its late growth stage and is expected to grow substantially over the forecast period. The industry is highly competitive and dynamic, with new companies entering the market and existing companies expanding their offerings. Traditional banks are increasingly entering the space, leveraging their brand reputation, and existing customer base. Fintech startups are disrupting the market with innovative approaches and agile operations. Technology giants and e-commerce companies are also venturing into the digital lending realm, capitalizing on their extensive customer reach and data analytics capabilities.

Leading Players in the Digital Lending Platforms Market

• BlendLabs Inc.
• EdgeVerve Systems Limited
• Fidelity National Information Services Inc. (FIS)
• Finastra Group Holdings Ltd
• LendingTree, LLC
• Newgen Software Technologies Limited
• Nucleus Software Exports Ltd.
• One97 Communications Ltd
• Roostify Inc.
• Wipro Limited

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Digital Lending Platforms Market Segments and Scope

GlobalData Plc has segmented the Digital Lending Platforms market report by type, deployment, end-use, and region:

Digital Lending Platforms Market Type Outlook (Revenue, $ Million 2020-2030)

• Software
  • Loan Origination Software
  • Loan Management Software
  • Analytics & Insights Software
  • Others
• Services

Digital Lending Platforms Market Deployment Outlook (Revenue, $ Million 2020-2030)

• Cloud
• On-premise

Digital Lending Platforms Market End-use Outlook (Revenue, $ Million 2020-2030)

• Banks
• Credit Unions
• Peer-to-Peer Lending
• Savings & Loan Associations
• Others

Digital Lending Platforms Regional Outlook (Revenue, $ Million 2020-2030)

North America

• The US
• Canada

Europe

• Germany
• The UK
• France
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• South Korea
• Rest of Asia Pacific

Central & South America

• Brazil
• Mexico
• Rest of Central & South America

Middle East & Africa

• Saudi Arabia
• The UAE
• Rest of Middle East & Africa

The market intelligence report provides an in-depth analysis of the following –

• Digital lending platforms market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the type, deployment, end use, and regional segments
• Competitive landscape: an examination of the positioning of leading players in the digital lending platforms market
• Company analysis: analysis of the market position of leading service providers in the digital lending platforms market
• Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.

Scope

This report provides overview and service addressable market for digital lending platform market.

It identifies the key trends impacting growth of the market over the next 12 to 24 months.

It includes global market forecasts for the digital lending platform market and analysis of patents, jobs activities, and venture funding trends.

It contains details of M&A deals in the digital lending space, and a timeline highlighting milestones in the development of digital lending platform market.

The detailed value chain consists of three layers: Borrowers layer, digital lending platform providers layer, and lenders layer.

Key Highlights

The global digital lending platforms market will be valued at $11.5 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 22.1% over the forecast period. The rising demand for digital channels, faster loan approvals and disbursements, and increased investments in emerging technologies is anticipated to drive the growth of the digital lending platforms industry.

Reasons to Buy

• This market intelligence report offers a thorough, forward-looking analysis of the global digital lending platforms market by type, deployment, end use, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
• Accompanying GlobalData’s Forecast products, the report examines the assumptions, drivers, deals, strategic initiatives, and trend analysis in digital lending platforms markets.
• Detailed segmentation by Type, Software, and Deployment
• The report also highlights segmentation at End Use level – Banks, Credit Unions, Peer-to-Peer Lending, Savings & Loan Associations, and Others.
• The report provides an in-depth analysis of the market size, forecast, and supporting factors which are tailor-made for an executive-level audience, with enhanced presentation quality.
• The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in digital lending platforms markets.
• The competitive section of the report helps in identifying the flagbearers, experimenters, contenders, and specialists based on their growth and innovation performance in the digital lending platforms industry which will help stakeholders analyze competition penetration.
• The broad perspective of the report, coupled with comprehensive, actionable detail will help BFSI sector stakeholders, platform providers, and other digital lending participants, succeed in growing the digital lending platforms market globally.