Digital Lending Platform Market Size to hit $17bn by 2025

Digital Lending Platform Market size is set to exceed USD 17 billion by 2025; according to a new research report by Global Market Insights, Inc.

The digital lending platform market is gaining traction due to rising internet penetration coupled with the proliferation of smartphones and an increase in the extent of digitization across financial institutions. The growing demand among credit seekers for minimal or zero documentation, flexible repayment methods, collateral-free loan approval, and low-interest rate is driving market growth. The digital lending platform integrates advanced technologies, such as AI, ML, biometric-enabled authentication, e-signature, advanced analytics, and blockchain, to improve business decision, credit risk decision, and enable ‘zero human touch’ monitoring & lending. It enables seamless money lending process and efficient monetary tractions.


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The platform enables financial institutions to enhance the customer experience by streamlining the lending process and automate several back-end office operations, such as document validation, thereby increasing revenue and improving productivity. Additionally, shifting consumer preference toward digital financial services and growth in the acceptance of m-commerce is contributing to digital lending platform market growth. The growing need for securing instant funds through seamless experience is proliferating market growth. Supportive government initiatives and regulations are driving market growth. For instance, in January 2018, the European Union’s second payments service directive allows consumers to pay directly from their accounts rather than having to send repayment through third parties such as Visa or MasterCard.

Digital Lending Platform Market

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The on-premise digital lending platform market held over 74% share in the revenue in 2018 due to lower Total Cost of Ownership (TCO) as there are minimal or zero monthly or annual subscription fees. The increasing number of cyberattacks and data breaches is supporting the financial institutions to adopt on-premise platforms to avert cyber risk, which is contributing to market demand.

PoS digital lending system will grow at a CAGR of 24% over the forecast timeline due to innovative and flexible repayment methods offered to merchants. Fintech companies are using data from PoS machine to calculate loan tenure, approved amount, and related credit risk. These credit decisions are backed by several advanced technologies including blockchain, machine learning, and artificial intelligence. For instance, NeoGrowth developed a digital lending platform, which offers unsecured loans to merchants. The platform is developed using PoS machine data of merchants. The company has raised over USD 90 million from investors and offers loan up to USD 15 million in 21 Indian cities. Additionally, it offers automatic daily repayments for merchants, which became the USP of the company.

Browse key industry insights spread across 330 pages with 489 market data tables & 34 figures & charts from the report, “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), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Switzerland, China, Japan, India, Australia, South Korea, Singapore, Argentina, Brazil, Colombia, Mexico, South Africa, Saudi Arabia, UAE), Growth Potential, Competitive Market Share & Forecast, 2019– 2025” in detail along with the table of contents:

The banks & NBFCs segment accounted for more than 55% share in 2018 and is anticipated to maintain the digital lending platform market share by 2025 due to rise in digitization to improve front-end customer experience and increase customer acquisition through social media channels. The financial institutions are focusing on strategic alliances with fintech companies to acquire specific customer information. For instance, in April 2018, Yes Bank of India partnered with Paisabazaar, an online platform related to cards and loans. This partnership helps Yes Bank to ease its digital lending process. The company uses API-based integration with online platforms of Paisabazar for supporting the seamless flow of customer documents and information whenever the customer chooses Yes Bank on Paisabazar platform. This reduces the operational time for credit decision and loan approval for Yes Bank that improves customer satisfaction and helps in quicker loan approval.

Asia Pacific digital lending platform market will grow at a CAGR of more than 25% over the forecast timeline due to the increasing number of fintech companies and other new entrants in the industry. Supportive government initiatives in the region to propel the SMEs through digitization and formalization to support economic growth and create ample jobs will contribute to market growth. The increasing disposable income improved regional infrastructure, and flexible payment methods are expected to increase the number of credit seekers in the regions, which will further proliferate market growth. 

Prominent companies operating in the digital lending platform market are ARGO Data Resource Corporation, Built Technologies, Inc., CU Direct, Decimal Technologies, Docutech LLC, Ellie Mae, Inc., Finantix, Finastra, FIS, Fiserv Inc., Intellect Design Arena Limited, Juristech, Mambu GmbH., Newgen Software Technologies Limited, Nucleus Software, Pegasystems Inc., Roostify, Sigma Infosolutions, Symitar, and Tavant Technologies.

The major market players in the market are focusing on strategic initiatives such as mergers, acquisitions, and collaborations with other market players to strengthen their product portfolio and expand their geographical presence. For instance, in August 2018, Capital Float, a digital lending platform provider, acquired personal a finance management application Walnut for USD 30 million. The acquisition is expected to the support consumer financing app launched by Capital Float through Walnut Prime that uses Prime Credit Score to determine the credit limit for individuals. The Prime Credit Score is a credit assessment model of Walnut, which captures and analyzes data from several alternative sources such as purchase capacity and income. This extends credit lines to new customers to help Capital Float in improving customer acquisition.

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The digital lending platform market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2014 to 2025 for the following segments:

By Component

  • Solution
    • Loan Origination System (LOS)
    • Loan Management System
    • Risk & Compliance Management System
    • Point of Sale (PoS) System
    • Lending Analytics
    • Collection & Recovery System
    • Others
  • 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

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

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


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