Digital Lending Platform Market size is estimated to surpass USD 20 billion by 2027, according to a new research report by Global Market Insights Inc.
The rising internet penetration across the globe is supporting the market growth. For instance, internet penetration across the U.S. was over 90% in 2020. The growing digitalization across the globe is helping digital lending platform providers to promote their financial lending products through various digital platforms. The increasing digitization across the globe is facilitating quicker and safer lending platform process ranging from customer acquisition to loan disbursement. The digitization helps the digital lending platform to offer real-time transactions while borrowing and repaying.
The increasing investments in and development of innovative POS models are supporting the digital lending platform market expansion
The POS system is expected to witness 20% growth rate through 2027 due to growing awareness regarding the new POS models. POS systems engage tools and calculators, which offer credit seekers with indicative pricing and product availability upfront. They help digital lenders to capture & validate documents and e-signatures of credit seekers to offer conditional decisions instantly. They improve customer experience, resulting in the proliferation of POS systems in the market.
The rising adoption of cloud platforms across the financial industry driving the market demand for cloud-based digital lending platforms
The cloud deployment model captured more than 20% of the digital lending platform market share in 2020 led by the increasing usage of cloud computing across the financial sector. The growing spending on cloud infrastructure and services in financial institutions will drive the segment growth. The growing market value from financial institutions for documentation storage, fast processing, and reduced time & cost-related to loan processing is contributing to the proliferation of the cloud-based digital lending platform.
Staff-driven business model is poised to dominate the digital lending platform market revenue
Staff-driven business model accounted for USD 6 billion in 2020 owing to the growing need to serve a broad range of customers. The staff-driven digital lending platform improves the sales funnel visibility and empowers sales decision with intelligent and actionable customer insights. The digital lending platform solution providers are integrating AI, ML, and advanced technologies to derive actionable insights. The digital lending platform assists the staff from customer acquisition to loan disbursement and repayment.
Browse key industry insights spread across 366 pages with 489 market data tables and 47 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), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The growing digitalization across mortgage loan providers is supporting the industry growth
The mortgage loan in the digital lending platform market is projected to grow at a CAGR 15% through 2027 impelled by the ever-evolving customer expectations & preferences coupled with competition from NBFCs and fintech entrants. The large mortgage banks are rapidly changing their focus on both digital capabilities and strategic mindsets to increase the number of credit seekers for mortgage loan. This is anticipated to foster the industry demand for mortgage loan-related lending platform among large financial institutions. The rise in the use of advanced analytics in digital mortgage is set to offer insights into potential opportunities, slated operating performance, and predictive behaviors.
Rising demand for e-banking services is predicted fuel the segment expansion
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The banks & NFCs segment will dominate 50% of the digital lending platform market share by 2027 on account of the rise in the number of customers using digital banking services. The banks are strategically focusing on improving digital lending platform capabilities to maintain a competitive position in the market. Changing customer preferences, increasing new generation customers, and improving technical capabilities are estimated to drive the market demand for the platform in banks.
Proliferation of smart devices and growing broadband penetration in North America are augmenting the regional growth
North America digital lending platform market is expected to reach USD 5 billion by 2027 due to the acceptance of advanced technologies, such as cloud, AI, and blockchain, in the financial sector. The governments in several emerging economies have directed their focus on credit seekers to increase financial inclusion of people, supporting the economic growth of the region. The growing digitalization and technological advancements are supporting the creation of financial technologies or fintech firms, further propelling the industry expansion.
Strategic partnerships & collaborations is the key strategy adopted by major market players
Some of the key players operating in the market are ARGO Data Corporation, Base-Net Informatik, Built Technologies AG, CU Direct, Decimal Tech, Docutech LLC, Elli Mae, Finantix (Investcloud), Finanstra, Fidelity National Information Services (FIS), Inc., Fiserv Inc., Intellect Design Arena Ltd., Juristech, Loanboox (Swiss Fintech AG), Mambu GmbH, Newgen Software Technologies Ltd., Nucleus Software Exports Ltd., Pegasystems, Inc., Roostify, Sageworks (Abrigo), Sigma Infosolutions, Symitar, Tavant, Temenos AG, Teylor AG, and Turnkey Lender. These companies are focusing on strategic partnerships to offer innovating digital lending solutions.