Digital Lending Platform Industry Overview
The global digital lending platform market size is expected to reach USD 44.50 billion by 2030, registering a CAGR of 25.9% from 2022 to 2030, according to a new report by Grand View Research, Inc. The growing adoption of digitalization in the BFSI sector is expected to create new opportunities for market growth. According to the European Central Bank, in 2020, 46% of European banks could process mortgages digitally in two days compared to 8% in 2015.
Digital Lending Platform Market Segmentation
Grand View Research has segmented the digital lending platform market based on solution, service, deployment, end-use, and region:
Based on the Solution Insights, the market is segmented into Business Process Management, Lending Analytics, Loan Management, Loan Origination, Risk & Compliance Management, Others.
- The business process management segment led the market and accounted for more than 30.0% share of the global revenue in 2021. Business process management has gained popularity owing to its potential to minimize operational costs and significantly increase productivity.
- Moreover, advances in big data and cloud computing are particularly driving the efficiency of business process management. The rising IT expenditure also bodes well for the growth of the business process management segment during the forecast period.
- The lending analytics segment is expected to witness the fastest growth during the forecast period. Lending analytics allow lenders to perform customer segmentation analysis and improve customer acquisition.
- At the same time, it also helps businesses in faster and more efficient customer onboarding and helps them enhance the customer experience. Several companies offering lending analytics solutions are pursuing strategies, such as mergers & acquisitions, and strategic partnerships, among others, as part of the efforts to enhance their offerings.
Based on the Service Insights, the market is segmented into Design & Implementation, Training & Education, Risk Assessment, Consulting, Support & Maintenance.
- The design & implementation segment led the market and accounted for more than 34.0% share of the global revenue in 2021.
- Financial institutions need a design & implementation framework to support the adoption of digital platforms. The framework can typically help financial institutions in carrying out the lending business operations efficiently.
- The benefits offered by the design & implementation segment include cost savings in operations and a flexible and agile administration process.
- The consulting segment is expected to witness steady growth during the forecast period. Consulting services enable the digital lending service provider to improve operation speed and efficiency. Various companies that provide consulting for digital lending platform providers are focused on strategies such as partnerships, mergers, and others for strengthening their market position.
Based on the Deployment Insights, the market is segmented into On-premise, Cloud.
- The on-premise led the market and accounted for more than 68.0% share of the global revenue in 2021. Financial institutions are opting for on-premise digital lending platforms as part of the efforts to annul cyber risks in the wake of the rising number of instances involving data breaches and cyberattacks.
- The on-premise deployment also reduces the total cost of ownership, as there are hardly any monthly or annual subscription fees involved. However, the fact that implementation of on-premise solutions requires more time as compared to cloud solutions can potentially hinder the growth of the segment.
- The cloud segment is expected to witness the fastest growth during the forecast period. The growing preference for cloud-based platforms among digital lending providers to enhance their offerings is driving the segment growth.
- The growing preference for digital channels, such as instant messaging and email, for customer service purposes coupled with the increasing volumes of digitized documents and loan applications, is expected to drive the growth of the cloud segment during the forecast period.
Based on the End-use Insights, the market is segmented into Banks, Insurance Companies, Credit Unions, Savings & Loan Associations, Peer-to-Peer Lending, Others.
- The banks' segment led the market and accounted for more than 30.0% share of the global revenue in 2021. The growing focus of banks on digitalizing their financial services is expected to drive the segment growth.
- Stringent regulations and favorable initiatives being pursued by governments of both developed and developing countries are also encouraging banks to adopt digital lending platforms and enhance customer experience. Digital lending platforms typically allow banks to ensure transparency in their loan processes.
- The credit unions segment is expected to witness significant growth during the forecast period. The credit unions use digital lending platforms to eliminate manual processes and errors for conducting efficient lending.
Digital Lending Platform Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market is moderately fragmented. Major players in the market are pursuing strategies, such as new product launches, mutual agreements, and product upgrades, among others, as part of the efforts to cement their market position.
Some prominent players in the global digital lending platform market include
- Ellie Mae, Inc.
- Fiserv, Inc.
- Newgen Software
- Nucleus Software
- Pegasystems Inc.
- Sigma Infosolutions
- Wizni, Inc.
Order a free sample PDF of the Digital Lending Platform Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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