Digital Lending Platform Global Market Opportunities and Strategies to 2033

This report describes and explains the digital lending platform market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global digital lending platform market reached a value of nearly $13.06 billion in 2023, having grown at a compound annual growth rate (CAGR) of 20.6% since 2018. The market is expected to grow from $13.06 billion in 2023 to $36.37 billion in 2028 at a rate of 22.7%. The market is then expected to grow at a CAGR of 24.1% from 2028 and reach $106.96 billion in 2033.

Growth in the historic period resulted from strong economic growth in emerging markets, increasing digitalization, growing importance of open banking and increasing adoption of online banking services. Factors that negatively affected growth in the historic period was higher dependency on traditional lending methods.

Going forward, increasing use of smartphones boom, increasing internet penetration, rising penetration of blockchain technology and rising urbanization will drive the growth. Factor that could hinder the growth of the digital lending platform market in the future include rise in data security concerns.

The digital lending platform market is segmented by type into loan origination, decision automation, collections and recovery, risk and compliance management and other types. The loan origination market was the largest segment of the digital lending platform market segmented by type, accounting for 31.6% or $4.12 billion of the total in 2023. Going forward, the risk and compliance management segment is expected to be the fastest growing segment in the digital lending platform market segmented by type, at a CAGR of 26.1% during 2023-2028.

The digital lending platform market is segmented by component into software and service. The software market was the largest segment of the digital lending platform market segmented by component, accounting for 68% or $8.88 billion of the total in 2023. Going forward, the service segment is expected to be the fastest growing segment in the digital lending platform market segmented by component, at a CAGR of 25.2% during 2023-2028.

The digital lending platform market is segmented by deployment model into on-premise and cloud. The on-premise market was the largest segment of the digital lending platform market segmented by deployment model, accounting for 65.7% or $8.57 billion of the total in 2023. Going forward, the cloud segment is expected to be the fastest growing segment in the digital lending platform market segmented by deployment model, at a CAGR of 26.3% during 2023-2028.

The digital lending platform market is segmented by industry vertical into banks, insurance companies, credit unions, savings and loan associations, peer-to-peer lending, and other industry verticals. The banks market was the largest segment of the mental health apps market segmented by industry vertical, accounting for 29.4% or $3.83 billion of the total in 2023. Going forward, the peer-to-peer lending segment is expected to be the fastest growing segment in the mental health apps market segmented by industry vertical, at a CAGR of 25.5% during 2023-2028.

North America was the largest region in the digital lending platform market, accounting for 35.8% or $4.67 billion of the total in 2023. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the digital lending platform market will be Asia Pacific and South America where growth will be at CAGRs of 27.2% and 23.8% respectively. These will be followed by Western Europe and Middle East where the markets are expected to grow at CAGRs of 22.2% and 21.1% respectively.

The global digital lending platform market is fairly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 27.2% of the total market in 2022. Upstart Holdings, Inc. was the largest competitor with a 7.8% share of the market, followed by Fidelity National Information Services, Inc. with 6.7%, LendingTree, Inc. with 2.9%, Accenture PLC with 2.2%, Finastra with 1.8%, Tavant with 1.7%, Fiserv, Inc. with 1.5%, Wipro Limited with 1.1%, Intercontinental Exchange, Inc with 1% and DocuSign, Inc. with 0.5%.

The top opportunities in the digital lending platform market segmented by type will arise in the loan origination segment, which will gain $7.11 billion of global annual sales by 2028. The top opportunities in the digital lending platform market segmented by component will arise in the software segment, which will gain $14.66 billion of global annual sales by 2028. The top opportunities in the digital lending platform market segmented by deployment model will arise in the on-premise segment, which will gain $13.37 billion of global annual sales by 2028. The top opportunities in the digital lending platform market segmented by industry vertical will arise in the banks segment, which will gain $6.46 billion of global annual sales by 2028. The digital lending platform market size will gain the most in the USA at $5.8 billion.

Market-trend-based strategies for the digital lending platform market include use of AI-based solutions to digitize the complete lending process, introduction of advanced platforms for seamless credit transactions, innovative technology advancement to provide process automation and strategic partnerships and collaborations among market players.

Player-adopted strategies in the digital lending platform market include focus on strengthening its operational capabilities through new product developments, enhancing business operations through the launch of new payment solutions, expanding product portfolio through new product developments, expanding production capabilities through strategic partnerships and new product developments.

To take advantage of the opportunities, the analyst recommends the digital lending platform companies to focus on ai integration for digital lending growth, focus on seamless credit platforms, focus on technological automation, focus on digital innovation for lending efficiency, focus on fastest growing market segments: risk and compliance management and decision automation, expand in emerging markets, continue to focus on developed markets, focus on strategic collaborations for geographical expansion, focus on competitive pricing strategies for market expansion, focus on integrated digital marketing for enhanced visibility, target smartphone users, focus on understanding end-user behavior and focus on fastest growing market segments: credit unions and peer-to-peer lending.