The global digital lending platform market is expected to grow at a CAGR of around 16.8% from 2021 to 2028 and expected to reach the market value of around US$ 20.5 Bn by 2028.
|Market||Digital Lending Platform Market|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Solution, By Service, By Deployment, By End-use and By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||KreditBee, Kissht, PolicyBazaar, Loanboox GmbH, Credible, Tyro Payments Limited, Fundbox, On Deck Capital, Funding Circle, and among others|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
|Customization Scope||10 hrs of free customization and expert consultation|
A digital lending platform (DLP) is a mortgage point-of-sale (POS) tool that automates the process from lead to rate lock. A digital lending platform has the potential to improve the precision and efficiency of access to financial products and services. Furthermore, digitizing the lending process provides far more powerful benefits for banks, including better decisions, improved customer experience and satisfaction, and significant cost savings.
Peer-to-Peer Lending (P2P) has gained significant importance for the growth of global digital lending platform market
P2P lending is a crowd-funding process combined with the use of an online platform that connects lenders and borrowers on a single platform to offer unsecured loans. The P2P platform collects loan repayments and performs preliminary creditworthiness assessments on borrowers. There are several P2P lending platforms in India. Some of these P2P lenders are heavily involved in the microfinance business, with a primary focus on social impact and providing credit to small entrepreneurs. This web-based platform connects lenders and borrowers on a single platform. One of the most significant benefits of P2P lending for borrowers is lower associated rates when compared to those offered by money lenders/unorganized sector, and the benefits for lenders are higher returns than those offered by conventional investment opportunities.
Digital lending platform has 100% gains during the COVID-19 pandemic
According to a World Bank report, the current COVID-19 pandemic has increased the importance of digital financial services in keeping financial systems running smoothly. As digitalization has gained prominence in the global digital lending platform market, it has aided in the faster achievement of sustainable development goals. For example, the current COVID-19 pandemic has heightened the importance of leveraging fintech to keep the financial system running in the face of social distancing, failing demand, reduced input supply, tightening credit conditions, and rising population uncertainty. Fintech is assisting the government in reaching out to people quickly and securely with cash transfers and other forms of financial assistance, as well as meeting business needs with emergency liquidity. As a result, the Corona virus pandemic has provided lucrative benefits for digital financial services in a variety of dimensions, with one critical role being the achievement of long-term development goals.
Partnerships between banks for digital lending platform market has gained maximum profits
Several banks have recently welcomed collaboration in order to reach larger milestones related to digital lending platforms. National Australia Bank (NAB), for example, has partnered with Xero, a cloud-based accounting software solution. Furthermore, in India, ICICI Bank has partnered with Paytm to provide short-term instant digital credit. Apart from that, startups have made significant profits by remaining at the forefront by providing a variety of digital lending platforms for consumers. By heavily leveraging data to automate loan underwriting for consumers, they have capitalized on the consumers by offering instant funds through a seamless experience. Popular examples of such startups providing digital lending platform include Alibaba, Kabbage, Ondeck, and Lending Club.
Stringent regulatory framework bolsters the growth of global digital lending platform market
According to the OECD report, banking is undergoing a transformation from being physically available to incorporating information technology (IT) and big data for highly specialized human capital. Digital technology may have a positive impact on the banking sector's increasing competitiveness and contestability. By restructuring the regulatory framework, the banking sector will transition to a customer-centric platform-based model. The Digital Lenders Association of India (DLAI) has recently issued a framework for a new code of conduct for all of its members, emphasizing responsible lending practices and ethical collection practices. The goal of such a code of conduct is to ensure that the digital lending industry creates common safeguards for the interests of customers. For example, the new guidelines state definitively that lenders may not include unethical features in their product offerings. Through the implementation of a new code requiring stricter compliance and an active focus on employee training in the organization under association maintenance digital lending platform market grow with a stronger pace.
The global digital lending platform market is segmented as solution, service, deployment, and end-use. Based on solution, the market is segmented as business process management, lending analytics, loan management, loan origination, risk & compliance management, and others. Further, service segment is segmented as design & implementation, training & education, risk assessment, consulting, and support & maintenance. By deployment, the market is bifurcated into on-premise and cloud. By end-use, the market is segmented as banks, insurance companies, credit unions, savings &loan associations, peer-to-peer lending, and others.
Based on solution, the business process management segment will take a forefront lead in the global digital lending platform market. By service, the design and implementation segment will record a dominating share for the global digital lending platform market. Further, by deployment the on-premise segment holds the dominating share for digital lending platform market and is anticipated to continue similar trend till the forecast period. Furthermore, based on the end-use, the banks segment holds a reasonable account of market share currently and will continue to do so till the forecast period for the global digital lending platform market.
North America dominates; Asia Pacific to witness fastest growing CAGR for the digital lending platform market
North America is expected to hold the largest share of the digital lending platform market in the coming years. This is due to the presence of prominent players providing a diverse range of product offerings to a large consumer base. Furthermore, the region has seen a significant increase in the adoption of advanced technologies related to banking services for convenience. Such factors have a positive impact on the growth of the digital lending platform market.
Asia Pacific, on the other hand, is expected to have the fastest growing CAGR in the digital lending platform market. This region has a strong startup foundation for a variety of digital lending platform product offerings to an ever-growing population base. This is one of the major factors driving the growth of the digital lending platform market.
The prominent players of the global digital lending platform market involve KreditBee, Kissht, PolicyBazaar, Loanboox GmbH, Credible, Tyro Payments Limited, Fundbox, On Deck Capital, Funding Circle, and among others
Market By Solution
Business Process Management
Risk & Compliance Management
Market By Service
Design & Implementation
Training & Education
Support & Maintenance
Market By Deployment
Market By End-use
Savings & Loan Associations
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Digital lending platform market is expected to reach a market value of around US$ 20.5 Bn by 2028.
The digital lending platform market is expected to grow at a CAGR of around 16.8% from 2021 to 2028.
Based on end-use, banks segment is the leading segment in the overall market.
Rising adoption of digitization is one of the prominent factors that drive the demand for digital lending platform market.
KreditBee, Kissht, PolicyBazaar, Loanboox GmbH, Credible, Tyro Payments Limited, Fundbox, On Deck Capital, Funding Circle, and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years