Digital Lending Platform Global Market Report 2024

The digital lending platform market size has grown exponentially in recent years. It will grow from $13 billion in 2023 to $15.65 billion in 2024 at a compound annual growth rate (CAGR) of 20.4%. During the historical period, the growth can be ascribed to the emergence of fintech companies, increased mobile and internet penetration, advancements in data analytics and credit scoring, a demand for speed and convenience, economic inclusion initiatives, and the expansion of peer-to-peer lending.

The digital lending platform market size is expected to see exponential growth in the next few years. It will grow to $34.6 billion in 2028 at a compound annual growth rate (CAGR) of 21.9%. The projected growth in the upcoming period can be ascribed to open banking initiatives, the surge of decentralized finance, a heightened emphasis on customer experience, sustained regulatory support, and a global economic recovery. Noteworthy trends expected in this forecast period encompass cross-border lending, the digitization of financial services, the adoption of mobile-first approaches, the integration of blockchain technology for enhanced security, a customer-centric approach, and the establishment of partnerships with fintech startups.

The anticipated growth of the digital lending platform market is closely tied to the increasing prevalence of smartphones. Smartphones, characterized by a touchscreen interface, an operating system supporting downloaded apps, and internet connectivity, are playing a pivotal role in this trend. The upsurge in smartphone usage is empowering users and borrowers to seek instant loans through digital lending platforms. Notably, according to DataReportal, a Singapore-based online reference library, the number of smartphones in use is experiencing a 5.1 percent annual growth rate, with an average of 1 million smartphones being added to the user base each day in 2022. Consequently, the widespread adoption of smartphones is a key driver propelling the growth of the digital lending platform market.

The global prominence of open banking is anticipated to play a crucial role in driving the expansion of the digital lending platform market in the future. Open banking, a system facilitating secure data sharing among financial institutions and third-party service providers such as fintech apps, empowers lenders to gather comprehensive information about borrowers. This includes details such as credit scores, past loan histories, and current outstanding debts. Leveraging open banking, lenders can expedite decision-making processes and offer personalized lending options in response to their clients' needs. Recognizing these benefits, numerous financial service companies are engaging in collaborations with open banking providers to enhance their lending procedures. As an example, in 2021, Credit Kudos Ltd., a UK-based company specializing in open banking and credit reference, reported that 87% of surveyed lenders expressed plans to incorporate open banking technology by 2023 in the U.K. Consequently, the growing global significance of open banking is a key factor propelling the growth of the digital lending platform market.

The dominant trends capturing attention in the digital lending platform market revolve around technological advancements. Leading market players are channeling their focus into developing cutting-edge technologies that facilitate automation throughout various business processes. A noteworthy example is Roostify Inc., a US-based digital home lending platform, which, in October 2021, introduced Roostify Document Intelligence (RDI). This AI-powered Application Programming Interface (API) embedded in the home lending platform is designed for seamless process automation and streamlined document management. RDI excels in tasks such as document classification, validation, and data extraction from loan-related documents, providing users with automatic feedback in case of incorrect document uploads. This showcases a commitment to leveraging technology for enhancing efficiency and user experience within the digital lending landscape.

Leading companies in the digital lending platform market are at the forefront of developing innovative technologies, including the implementation of public tech platforms, to enhance customer service. A notable example is the Reserve Bank of India, which, in August 2023, introduced a Public Tech Platform designed to facilitate seamless credit transactions by ensuring the smooth flow of essential digital information to lenders. This platform is geared towards integrating various services, such as Aadhaar e-KYC, state government land records, satellite data, PAN validation, Aadhaar e-signing, and house/property search data. The platform's open architecture, open Application Programming Interfaces (APIs), and open standards enable all participants in the financial sector to easily connect and operate in a 'plug and play' manner. The overarching goal is to bring efficiency to the lending process, with benefits including cost reduction, accelerated disbursement, and scalability.

In a significant move in July 2022, M2P Fintech, an API Platform for banking and payments products based in India, acquired Finflux for an undisclosed sum. This strategic acquisition was geared towards enabling M2P Fintech to expand its services to include support for lending products and enhance workflow automation. Finflux, the acquired company, is a cloud lending platform based in India, and the synergy between the two entities is expected to bring about advancements in the digital lending landscape.

Major companies operating in the digital lending platform market report are Nucleus Software Exports Limited, Accenture PLC, Fiserv Inc., Fidelity National Information Services Inc. (FIS), One97 Communications Ltd., HES FinTech POS, Wipro Limited, DocuSign Inc., Finastra Limited, Pegasystems Inc., Black Knight Inc., LendingTree LLC, Temenos AG, Ellie Mae Inc., ICE Mortgage Technology Inc., Tavant Technologies Inc., EdgeVerve Systems Limited, BlendLabs Inc., Teylor AG, Intellect Design Arena Ltd., Mambu GmbH, Newgen Software Technologies Ltd., Sigma Infosolutions Ltd., Auxmoney GmbH, Roostify Inc., DocuTech Corporation, Built Technologies lnc., Decimal Technologies Pvt Ltd., CU Direct Corporation, Swiss Fintech AG, Upstart Network Inc., ZestFinance Inc.

North America was the largest growing region in the digital lending platform market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital lending platform market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital lending platform market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary segments within the digital lending platform market include loan origination, decision automation, collections and recovery, risk and compliance management, and other miscellaneous categories. In the loan origination market, entities (such as organizations, sole traders, and partnerships) engage in selling digital lending platforms. These platforms are designed to facilitate easy loan application services for borrowers, automate processes, and provide financial analysis to banks, thereby reducing processing time. Loan origination encompasses the step-by-step process of applying for a loan, with components including solutions and services, and deployment models ranging from on-premises to cloud. The market caters to various industry verticals, including banks, insurance companies, credit unions, savings and loan associations, peer-to-peer lending, and others.

The digital lending platform market research report is one of a series of new reports that provides digital lending platform market statistics, including digital lending platform industry global market size, regional shares, competitors with a digital lending platform market share, detailed digital lending platform market segments, market trends and opportunities, and any further data you may need to thrive in the digital lending platform industry. This digital lending platform market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The digital lending platform market includes revenues earned by entities by commercial loans, consumer loans, commercial finance, and a 24/7 loan marketplace. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.