Digital Lending Platform Market Analysis

Digital Lending Platform Market Analysis

Digital lending platform market revenue from Loan Origination System (LOS) segment is projected attain 15% gains through 2032.  LOS offers a suite of benefits to organizations, allowing them to reduce overall expenses, seamlessly onboard customers, ensure regulatory compliance, and competitively underwrite loans. Technological advancements should enable the automation of different stages of LOS including loan application, processing, underwriting, disbursal, and servicing.

The risk assessment service type is slated to observe 24% growth during 2023 to 2032. This services allows digital lending platforms to make actionable decisions regarding risk control with the help of efficient risk evaluation. Owing to burgeoning concerns associated with financial crimes and cybersecurity threats, several banks and NBFCs are leveraging digital touchpoints for strengthening crime risk management frameworks.
 

Personal loan sector accounted for more than 50% of the digital lending platform market share in 2022. Increasing demand for instant loan approval and disbursal for widespread social needs are complementing industry outlook. Fintech firms are upgrading their portfolio of personal loan products with attractive lending options, flexible payment methods, and low-interest rates. For instance, in October 2022, the Indian public sector bank, Bank of Baroda announced that customers can now apply for personal loans online through its digital lending platform.
 

Digital lending platform market from Banks and NBFCs sector will witness 19.5% growth rate through 2032. The advent of digital banking is driven by changing customer preferences and improving technical capabilities. Digital payments and banking services have eliminated the challenges associated with traditional banking methods. As it is 100% online, customers get control over financial activities remotely.
 

Europe digital lending platform market size is poised to expand at over 22% CAGR through 2032. Over the last few years, European countries have perceived a surge in the acceptance of digital lending platforms, offering lucrative business opportunities for leading participants. Several private and public organizations are investing in digital lending platforms to leverage the ongoing popularity of digital banking.