Digital Lending Platform Market Size, Share & Industry Analysis, By Component (Solution, Services), By Deployment (On-premise, Cloud-based), By End-User (Banks, Insurance Companies, Credit Unions, Savings and Loan Associations, Peer-to-Peer Lending, Others) and Regional Forecast, 2024-2032

Digital lending refers to the use of online technology to originate and renew loans to deliver faster and more efficient financial decisions. The digital lending platform handles every step of the loan origination process that starts with applying for the loan, online user registration, online documentation submission, customer authentication and verification, loan approval, loan disbursement, and loan recovery. It helps in more efficient monetary transactions as well as provides a seamless money lending process. It also helps banking organizations to improve their productivity by automating the complete work.

The growing inclination of organizations towards digitalizing their financial services is fuelling the growth of the digital lending platform market. The banking organizations are redesigning their credit lending journeys to reduce the timeframe from application to funding, which saves approximately 30.0% of costs associated with the process. Similarly, digital data analytics enables banks and credit unions to understand consumers better as well as to identify business opportunities. Banks also analyzes payment networks to find non-customers affiliated with their current customers to capture a large customer base through digital marketing. Thus, the demand for digital lending platform solutions is increasing rapidly in the market. Furthermore, the rising adoption of smart devices and the growing demand for proximity marketing is fuelling the growth of the digital lending platform market. Additionally, favorable government initiatives to support digital lending and the increasing need for reduced loan management time among borrowers will create lucrative opportunities for the growth of the digital lending platform market.

Key Market Driver -

Growing inclination of organizations towards digitalizing their financial services

Key Market Restraint -

Rising security concerns related to the online banking

However, rising security concerns related to online banking and the increasing number of fraud digital transactions are some of the factors limiting the market growth of the digital lending platform.

Market Segmentation:

Based on the component, the market is segmented into solution, and services. By solution, the market is further divided into loan origination, decision automation, collections and recovery, risk and compliance management and others. By deployment, the market is bifurcated into on-premises and cloud-based. Based on end-user, the market is segmented into banks, insurance companies, credit unions, savings and loan associations, peer-to-peer lending and others.

From a geographical standpoint, the market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Key Players Covered:

The major companies in the global digital lending platform market report include Black Knight, Inc., Ellie Mae, Inc., Finastra, FIS, Fiserv, Inc., Intellect Design Arena Ltd., Nucleus Software Exports Ltd., Tavant, Temenos Headquarters SA and Wipro Ltd.

Regional Analysis:

The global digital lending platform market has been segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America followed by Europe, dominated the global digital lending platform market in 2018, owing to the rising adoption of AI-based digital lending solutions to enhance the digital banking experience for the customers. Furthermore, the growing organization's efforts to digitized their financial services to target large customer base is anticipated to fuel the demand for digital lending platform solutions in Asia Pacific. Additionally, the rising penetration of mobile computing devices and the growing popularity of online banking are driving the digital lending platform market growth in Asia Pacific. Latin America and the Middle East & Africa are projected to register a comparatively higher CAGR by the end of the forecast period.

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Segmentation

Digital Lending Platform Industry Developments

• In June 2018, Xiaomi Corporation partnered with KreditBee, one of the leading digital lending platform, to launch Mi Credit service, personal loan service for Android phones, that offers instant personal loans to its users on their smartphones.


• In February 2018, Newgen Software, Inc., one of the leading banking platform providers, introduced new Commercial Loan Origination Solution (CLOS), specially designed for large and mid-sized banks, to automate complex processes across banking departments to enhance customer satisfaction. This solution ensures capture of information as per bank-specific business operations, regulatory frameworks and Business Intelligence (BI)