Digital Lending Market to Reach Valuation of USD 22.4 Billion by 2028 - Proliferation of smart phones and growth in digitalization to Drive the Market Growth

Vantage Market Research

May 08, 2022

From the period 2022 to 2028, the Global Digital Lending Market is expected to reach USD 22.4 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 13.5%.

Traditional lending methods, which are often time-consuming and tiresome, are preferred by many organizations. They are unable to embrace advances due to their fixed customer base and established credit underwriting methods. Furthermore, low adoption of automated and sophisticated Digital Lending procedures is due to a lack of understanding of digital lending, as well as training and skillsets to manage advanced solutions. The world's developing and underdeveloped countries continue to rely on outdated telecom infrastructure that cannot provide low latency and high-capacity connectivity. A bad customer experience might be caused by slow internet speeds. Because all of the services provided by Digital Lending platforms are provided online, a poor connection will result in lower service quality. Digital Lending options are challenging to adopt due to a lack of high-speed internet. Despite the considerable delays in approvals, firms in these nations rely increasingly on offline lending choices, as face-to-face interactions provide better knowledge and customer experience.

Key Highlights from the Report

  • On the basis of Offering, the market is segmented into Solutions and Services. In 2020, the market was led by the Service sector. During the forecast period, the Services section of the Digital Lending Market is predicted to increase at a faster rate. The three sorts of services accessible on the market are consulting installation, and support & maintenance. These services assist companies in selecting the optimal solution, integrating it with their current infrastructure, providing ongoing maintenance and support, and troubleshooting issues.

  • On the basis of End Users, the market is segmented into Banks, Credit Unions, and NBFCs. The global market for Digital Lending chargers is led by Bank, which is likely to maintain its lead during the forecast period. Banks led the market in revenue in 2021, accounting for more than 30.0 percent of total revenue. Banks' increasing focus on digitizing their financial services is expected to propel the segment's expansion. Through stringent restrictions and helpful efforts, governments in both developed and developing countries are encouraging banks to embrace Digital Lending platforms and improve the consumer experience. Digital Lending platforms can help banks ensure that their loan processes are transparent.

  • is the fastest regional segment in terms of growth. The adoption of Digital Lending solutions in the region is being driven by government measures to develop digital infrastructure. Due to rapid economic changes, globalization, digitization, and the rising prevalence of smartphones, APAC is likely to be the fastest-growing market. Leading Digital Lending companies like Newgen Software, Nucleus Software, and Intellect Design Arena are focusing on building cutting-edge lending solutions and technology to help automate, streamline, and manage the whole loan processing life cycle. In order to provide a comprehensive Digital Lending platform, the suppliers have begun developing AI, machine learning, analytics, and blockchain-based solutions.

Some of the key players in the Global Digital Lending Market include Fiserv (US), ICE Mortgage Technology (US), FIS (US), Newgen Software (India), Nucleus Software (India), Temenos (Switzerland), Pega (US), Sigma Infosolutions (India), Intellect Design Arena (US), Tavant (US), Docutech (US), Cu Direct (US), Abrigo (US), Wizni (US), Built Technologies (US), Turnkey Lenders (US), Finastra (UK), RupeePower (India), Roostify (US), JurisTech (Malaysia), Decimal Technologies (India), HES Fintech (Belarus), ARGO (US), Symitar (US), EdgeVerv (India), TCS (India), Wipro (India), SAP (Germany), Oracle (US), BNY Mellon (US), Black Knight (US) and others.

Market Dynamics:

The proliferation of smartphones and growth in digitalization

As the number of cell phones in the world grows, so does the demand for Digital Lending solutions that allow for faster and more convenient loan processing from anywhere. Digital Lending platform providers are being compelled to improve their solutions in order to satisfy client expectations and provide a better customer experience. Digitalization aids in the automation of operations, the reduction of lending process costs, and the reduction of client access time.

The capabilities of blockchain technology to efficiently transfer documents with high integrity

The ability of blockchain technology to move documents quickly and securely with high integrity is predicted to expand its popularity among Digital Lending companies. Participants in the loan process, such as regulators and auditors, may readily verify identities and follow transactions using blockchain technology. Figure Lending LLC and Apollo, for example, performed a transaction including the transfer of ownership and digital mortgage loans using blockchain technology in March 2022. The mortgage industry is projected to benefit from increased transparency and efficiency as a result of this secure and streamlined mortgage loan register. To reduce funding and origination expenses, digital lenders around the world are working to gain banking licenses.

With a market share of 39.50 percent in 2021, North America is expected to gain the most market share. The presence of large Digital Lending providers throughout North American countries is expected to bolster regional growth. In addition, the region has been a forerunner in implementing cutting-edge technologies. As a result, demand for digital, end-to-end financial solutions has always been high in North America. Because of the region's large mobile workforce, financial institutions are being pushed to digitize their services and improve customer experience. As a result, financial institutions in the region are striving to differentiate themselves from their competitors by offering distinctive digital solutions as part of their efforts to gain a major competitive advantage.