by The global digital lending market involves providing financial services through digital platforms and technologies. It allows borrowers to obtain credit from lenders through online applications and digital interfaces. Major products in the market include personal loans, business loans, automotive loans, mortgage loans, and others. The lending process involves steps such as loan origination, underwriting, disbursements and repayment collection which are now performed electronically through mobile and web applications. Advancements in areas like artificial intelligence, machine learning and big data analytics are helping develop more customized and predictive lending products.
The global digital lending Market is estimated to be valued at US$ 620.92 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Integration of financial technology solutions is expected to drive growth of the digital lending market. The lending industry is increasingly adopting technologies like blockchain, open banking APIs and digital payments to streamline operations and enhance customer experience. For instance, blockchain allows decentralized verifications of transactions and identities without intermediaries resulting in lower costs and fast approvals. Similarly, open banking APIs enable loan originating and servicing on unified digital platforms through data sharing between financial institutions subject to customer consent. These FinTech partnerships help lenders launch innovative products, conduct business processes remotely and expand their customer base globally. Another factor expected to fuel the market is growing preference of young generation towards contactless lending services on smartphones. This has led to a surge in demand for mobile loans supporting instant loan approvals and disbursals through digital platforms. These technologies and preferences are promoting shift away from traditional in-person lending towards automated online lending.
Segment Analysis
The digital lending market can be segmented by solution into decision automation and risk analytics, loan origination, loan servicing, collection, and Others. The loan origination segment is expected to dominate the market during the forecast period. The growth can be attributed to increasing utilization of digital lending platforms for applying and processing loans digitally. This provides advantages like improved convenience, reduced turnaround time, and optimized operations for both lenders and borrowers.
PEST Analysis
Political: Regulations related to data privacy and security are prompting digital lenders to strengthen their compliance practices.
Economic: The digital lending market is growing due rising disposable income and increasing penetration of internet and smartphones. Low-interest rates are also encouraging borrowers opt for loans.
Social: Growing financial inclusion and preference for contactless services are driving individuals to use digital lending platforms for taking personal, business, and other loans.
Technological: Advancements in areas like AI, ML, blockchain are helping digital lenders improve risk assessment, credit decisions, and automate processes. This is enhancing customer experience.
Key Takeaways
The Global Digital Lending Market Size is expected to witness high growth during the forecast period.
North America is expected to dominate the market owing to presence of several digital lenders and FinTech companies in the region.
The key players operating in the digital lending market are Pacific Biosciences of California, Inc., Oxford Nanopore Technologies, Ltd., BGI Genomics Co., Ltd., F. Hoffmann-La Roche AG, Illumina, Inc., Thermo Fisher Scientific Inc., QIAGEN N.V., Agilent Technologies, Inc. GenapSys Inc., Loop Genomics, Nabsys, Inc., Genia Technologies, Inc., Stratos Genomics, Inc., GATC Biotech AG, Phase Genomics, Inc. Key players are focusing on technology advancement to enhance risk assessment, automate processes and provide superior customer experience.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
