Digital Lending Platform Market Size By Component (Solution [Loan Origination System (LOS), Loan Management System, Risk & Compliance Management System, Point of Sale (PoS) Systems, Lending Analytics, Collection & Recovery System], Service [Support & Maintenance, Design & Implementation, Training & Education, Risk Assessment, Consulting]), By Deployment Model (On-Premise, Cloud), By Business Model (Customer Driven, Staff Driven), By Product (Personal Loan, Automotive Loan, SME Finance Loan, Mortgage Loan), By Application (Banks & NBFCs, Credit Unions, Fintech Companies, P2P lenders), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: May 2021  |  Report ID: GMI3019  |  Authors: Preeti Wadhwani, Smriti Loomba

Report Format: PDF   |   Pages: 366   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Digital Lending Platform Market size exceeded USD 5 billion in 2020 and is set to grow at a CAGR of over 20% between 2021 and 2027. Increasing adoption of internet services and the changing customer requirements, which have encouraged financial institutes to move toward the digital business model is likely to drive the industry growth. The increasing efficiency of digital lending platform in developing customer-centric models to provide better customer experience and gain customer loyalty will create new opportunities for market expansion.

Digital Lending Platform Market

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The growing demand for minimum physical documentation and hassle-less & faster loan approvals is proliferating the market growth. The importance of digital lending platforms in reviving the global economic outlook has become even more paramount, considering the second wave of COVID-19 that has hit the world again. The BFSI industry is under enormous pressure in the midst of the pandemic to deal with dynamically changing customer requirements and increased affinity of users towards digital channels. Digital lending platforms are expected to provide additional benefit and value-added services to loyal customers to ensure retention, boosting the market growth of digital lending platform.

The rapid adoption of digital channels by banks, financial institutions, fintech, and other digital lenders to improve the customer experience for the borrower is fueling the digital lending platform market revenue. The deployment of advanced technologies, such as AI, machine learning, and predictive analytics, in the digital lending platforms is anticipated to help digital lenders to make smarter and data-driven decisions for each individual borrower.

Growing deployment of Loan Origination Solutions (LOS) for operational efficiency propelling the Germany market growth

Germany Digital Lending Platform Market By Solution

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In Germany, the loan origination system (LOS) segment held a substantial market share of around 31.50% in 2020 and is projected to continue its dominance through 2027. This is attributed to the impact of LOS on improving operational efficiency, reducing operational cost, and catering to regulatory challenges. Financial institutions, fintech, and banks across Germany are increasingly deploying the LOS platform to offer several types of loans, such as home loans, personal loans, and vehicle loans, to credit seekers.

Tighter data control driving the on-premise digital lending platform market growth in China

China Digital Lending Platform Market By Deployment Model

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In China, the on-premise deployment segment held the majority of the market, accounting for USD 506.07 million revenue in 2020. The growing concern over data safety & security among Chinese financial institutions is augmenting the demand for the on-premise solutions. On-premise solution reduces third-party dependence for service & maintenance and diminishes the dependence on internet connectivity for its end-users.

High financial literacy triggering the market of customer driven digital loans in the U.S.

In the U.S. digital lending platform market, the customer driven business model segment is set to expand at about 20% CAGR through 2027 on account of the financially sophisticated & market-aware consumers and robust consumer-oriented regulations. Changing customer preferences and the increasing number of Generation-Y customers in the country are poised to propel the market demand.

Digitalization of financial ecosystem is profoundly impacting the Brazil personal loan market expansion

In Brazil, the personal loan segment is estimated to achieve a growth rate of above 20% till 2027. The rise in the disposable income coupled with the availability of luxury goods is driving the demand for a personal loan. The increasing number of new entrants offering a narrow product segment for a specific group of credit seekers with low loan limit is spurring the segment growth.

Increasing affinity of fintech providers for digital lending platforms augmenting the industry growth in UK

In UK digital lending platform market, the fintech segment is forecast to register 25% growth through 2027 as the venture capitals, angle investors, and prominent players in the BFSI sector are providing hefty funding to fintech companies across the region. The increasing demand for customer-centric approach, better customer engagement, improved customer touchpoints, and quicker & safer loan processing is fueling the demand for the digital lending platform from fintech companies.

Rapid digitalization of BFSI sector catalyzing the market growth in Asia Pacific

Asia Pacific Digital Lending Platform Market By Country

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Asia Pacific held more than 25% of the digital lending platform market share in 2020. The digitalization initiatives in India and China are supporting the APAC market revenue. For instance, the digital India initiative in India has led many SMEs to shift toward the digital banking processes. These SMEs are also using digital lending platforms to support their business requirements. The region is also witnessing strategic collaborations between digital lending platform vendors to serve regional SMEs, propelling the market growth.

Sustained investments in financial technologies to be the key market differentiator

The global digital lending platform industry is highly fragmented due to the presence of several multinational and regional players. These companies are investing heavily in R&D to develop more robust digital lending platform solutions and innovate their existing solutions. For instance, Fiserv, Inc. invested nearly USD 500 million in developing new & innovative as well as enhancing existing offerings.

The market has witnessed significant strategic partnerships and new product developments. For instance, in April 2021, Finastra partnered with HUBX to enable streamlined loan syndication process. Through this partnership, the companies integrated HUBX digital front-office platform with Fusion Loan IQ through Finastra’s open development platform.

Some of the key players operating in the digital lending platform market include ARGO Data Resource Corporation, Base-Net Informatik AG, Built Technologies, Inc., CU Direct, Decimal Technologies Pvt Ltd. Docutech LLC, Ellie Mae, Inc. Finantix, Finastra, FIS Inc., Fiserv Inc., Intellect Design Arena, Juristech Sdgn Bhd, Loanboox (Swiss Fintech AG), Mambu GmbH, Newgen Software Technologies Limited, Nucleus Software Ltd., Pegasystems Inc., Roostify, Sageworks, Sigma Infosolutions, Symitar, Tavant, Temenos AG, Teylor AG, and Turnkey Lender.

This market research report on digital lending platform includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Component

  • Solution
    • Loan Origination System (LOS)
    • Loan Management Systems
    • Risk & Compliance Management Systems
    • Point of Sale (POS) Systems
    • Lending Analytics
    • Collection & Recovery System
    • Others
  • Solution
    • Support & Maintenance
    • Design & Implementation
    • Training & Education
    • Risk Assessment
    • Consulting

Market, By Deployment Model

  • On-premise
  • Cloud

Market, By Business Model

  • Customer Driven
  • Staff Driven

Market, By Product

  • Personal Loan/Consumer Loan
  • Automotive Loan
  • SME Finance Loan
  • Mortgage Loan

Market, By Application

  • Banks & NBFCs
  • Credit Unions
  • Fintech Companies
  • P2P Lenders

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Switzerland
  • Asia Pacific
    • Australia
    • China
    • India
    • Japan
    • South Korea
    • Singapore
  • Latin America
    • Argentina
    • Brazil
    • Mexico
    • Colombia
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa

Frequently Asked Questions (FAQ) :

The digital lending platform industry share was over USD 5 billion during 2020 and will register around 20% CAGR up to 2027 owing to the higher demand for internet services and consistently changing customer requirements.
The regional market share from loan origination system (LOS) component segment accounted for an industry share of over 31.5% in 2020 and will grow with increasing need to improve operational efficiencies.
The digital lending platform market value in China from the on-premise deployment segment surpassed USD 506.07 million in 2020 and will expand with rising concerns over data safety and security in financial institutions.
The regional digital lending platform market size from the fintech company application segment is pegged to witness 25% CAGR up to 2027 with a higher need for a customer-centric approach and quicker loan processing.
Asia Pacific contributed to more than 25% of the digital lending platform industry share in 2020 owing to the rise in digitalization initiatives across India and China.

Premium Report Details

  • Published Date: May 2021
  • Pages: 366
  • Tables: 489
  • Charts / Figures: 47
  • Companies covered: 26
  • Countries covered: 21

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