PUBLISHER: The Business Research Company | PRODUCT CODE: 1470347
PUBLISHER: The Business Research Company | PRODUCT CODE: 1470347
Digital lending platforms are modern technological solutions that facilitate the process of granting loans through digital channels. These platforms represent a significant evolution in the traditional lending industry, integrating technology to streamline and optimize loan origination, decision-making and management processes. Digital lending platforms are primarily used by financial institutions such as banks, credit unions and insurance companies, as well as by alternative lending providers like peer-to-peer lending platforms. They serve a diverse range of clients, from individual consumers seeking personal loans to businesses requiring commercial lending services.
The digital lending platform market consists of sales, by entities (organizations, sole trader or partnerships), of digital lending services through lending platforms that refer to online services or platforms that facilitate the borrowing and lending of money, usually without the need for traditional brick-and-mortar institutions such as banks.
The global digital lending platform market was valued at $5,130.8 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 20.0%.
Increasing Adoption Of Online Banking Services
During the historic period, the shift in trends from traditional banking to online banking propelled the growth of the digital lending platform market. Online banking has surged in popularity in recent years, with the increasing use of smart phones and internet users around the world. Customers consider online banking to be one of the most convenient and widely used options because it provides instant affordability for applications. Many digital lending platforms integrate with online banking services, allowing borrowers to link their bank accounts directly to the platform. This integration streamlines the loan application process by enabling automatic verification of income and bank statements, reducing paperwork and enhancing the overall user experience. For instance, in 2021, 71% of all Americans look primarily to online and mobile channels for their banking needs, according to the American Bankers Association (ABA). Thus, the shift in trends from traditional banking to online banking, propelled the growth of the digital lending platform market.
Introduction Of Advanced Platforms For Seamless Credit Transactions
Major companies operating in the digital lending platform market are developing advanced platforms, aimed at facilitating frictionless credit transactions. For instance, in August 2023, the Reserve Bank of India, an India-based central bank, launched a Public Tech Platform that seeks to facilitate credit through the seamless flow of required digital information to lenders. This platform will enable integration with various services such as Aadhaar eKYC (electronic Know Your Customer), land records from state governments that have joined the system, satellite data, permanent account number (PAN) validation, Aadhaar e-signing and house/property search data. All participants in the financial sector will be able to easily connect and operate in a "plug and play" manner with the end-to-end digital platform's open architecture, open Application Programming Interfaces (APIs) and open standards. It aims to bring about efficiency in the lending process in terms of cost reduction, quicker disbursement and scalability.
The global digital lending platform market is fairly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 27.2% of the total market in 2022.
Digital Lending Platform Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global digital lending platform market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for digital lending platform? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The digital lending platform market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider digital lending platform market; and compares it with other markets.
Market Segmentation - Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by type, by component, by deployment model and by industry vertical in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.