Digital Lending Platform Market by Component, Type, Deployment Model, and End-User: Global Opportunity Analysis and Industry Forecast, 2019-2026
According to a recent report published by Allied Market Research, titled, "Digital Lending Platform Market by Component, Type, Deployment Model, and End-User: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global market was valued at $4,798.28 million in 2018, and the digital lending platform market forecast is projected reach $19,884.51 million by 2026, registering a CAGR of 19.6% from 2019 to 2026.
Digital lending platforms have enabled borrowers and lenders to lend money through paperless or electronic means, offering ease of use, enhanced consumer experience, and reduced overhead through customer verification time-savings. The growth of digital lending platform market can be attributed to continuous rise in the digital lending landscape among both developed and developing economies.
The technology has made way for several opportunities for lenders to focus and manage loan processes in an automated manner and allow its customers to apply and receive loans easily. Moreover, rise in government initiatives for online lending, and increase in number of start-ups in developing economies positively impact the market growth. However, security issues associated with digital lending platforms hinder the growth of the digital lending platform market. The market has seen continuous innovations as recently Tavant announced the integration between AI-powered digital lending platform, and Optimal Blue’s industry-leading product eligibility and pricing engine. The integration provides capabilities to loan originators for multi-system product and pricing distribution to provide its customers a more personalized and customized exchange; thus, reducing the amount of manual intervention, and data accuracy across the supported loan process.
The on-premise segment dominated the digital lending platform market in 2018 and is projected to maintain its dominance during the forecast period, owing to its superior capabilities, such as better management of servers, and high data security. Furthermore, the cloud-based segment is expected to grow at a significant CAGR during the forecast period. Adopting a cloud strategy offers them several numbers of key benefits for businesses in the digital lending industry such as ease of implementation, low cost, and unlimited accessibility. Furthermore, cloud-based flexible integration eliminates the need for manual verification of credit and financial information, identity and vital records, and employment or business registration information. These significant time-savings can be applied to processing in a greater number of loan applications and approvals.
The global digital lending platform market was led by the banks segment in 2018 and is projected to maintain its dominance during the forecast period. However, the peer-to-peer lending segment is expected to witness the highest growth rate, owing to the significant growth of P2P lending among SMEs to get business loans in rapid manner. For instance, according to the British Banking Association, P2P business lending recorded sanctioning of 15% of new small businesses loans.
Based on region, the global digital lending platform market was dominated by North America in 2018 and is expected to maintain this trend during the forecast period. The major factors driving the growth of the digital lending platform market in this region include high fintech investments, and well-established BFSI industry in the region. However, Asia-Pacific is expected to witness the highest growth, owing to rise of the digital lending landscape supported by increase in number of start-ups, and several government initiatives across the developing countries such as China, India, and Japan, in the region.
According to Pramod Borasi, Research Analyst, ICT at Allied Market Research, “India is expected to exhibit fastest growth during the forecast period, owing to significant increase in digital lending, supported by enabling policy of e-KYC and the formalization and acceptance of the Indian credit rating system.”
Key Findings of the Digital Lending Platform Market :
Based on component, the software segment led the digital lending platform market analysis in terms of revenue in 2018. By deployment model, the on-premise accounted for the highest digital lending platform market share in 2018. Based on region, North America generated the highest revenue in 2018. Depending on end-user, the peer-to-peer lending segment is anticipated to exhibit substantial growth during the forecast period. Based on region, Asia-Pacific is anticipated to exhibit substantial growth during the forecast period. The global digital lending platform industry analysis include some of the key market players such as Black Knight, Ellie MAE, Finastra, FIS Global, Fiserv, Intellect Design Arena, Nucleus Software, Tavant Technologies, Temenos, and Wipro.