The global Digital Lending Market to Show Substantial Growth Accelerated by Technological Advancements
Digital Lending Market |
Digital lending involves online
lending where the entire process is automated using advanced algorithms and
digital platforms. It provides quick and hassle-free access to credit for
consumers and businesses. Customers can apply for loans online and the lending
platforms use data analytics and alternate data sources to assess creditworthiness
and sanction loans instantly. This has boosted financial inclusion. The global
Digital Lending Market is estimated to be valued at US$ 538.99 Mn in 2023 and
is expected to exhibit a CAGR of 26.9% over the forecast period 2023-2030, as
highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing adoption of digital
lending services across various industries has been an important trend in the
digital lending market. With technological advancements like AI, machine
learning and data analytics, digital lending platforms are able to analyze
large amounts of data quickly for credit scoring and decision making. This has
enabled faster loan approvals and disbursals. Digital lending platforms collect
data from various digital footprints of customers like social media profiles,
banking transactions, mobile phone usage etc. to build alternative credit
profiles. This has expanded credit access to more customers including those
with insufficient credit history. The ability of digital lending platforms to
leverage new sources of data is expected to drive further growth in the market
over the forecast period.
Segment Analysis
The global digital lending market
is segmented by solution into lending platforms and lending analytics. The
lending platforms segment held the largest market share in 2023 owing to growth
in adoption by banks, financial institutions, and FinTech companies. The
lending platforms segment provides a centralized platform for financial
institutions to manage their lending operations. Features such as automation of
loan origination and underwriting processes, disbursement management, and loan
servicing help in optimizing operations and enhancing customer experience. The
segment is expected to maintain its dominance during the forecast period.
Key Takeaways
The Global
Digital Lending Market Size is expected to witness high growth over the
forecast period of 2023 to 2030. Regional analysis shows that North America
held the largest market share in 2023 attributed to presence of major digital
lending players in the US and Canada. However, Asia Pacific is expected to grow
at the fastest CAGR during the forecast period, primarily due to growing
adoption of digital lending solutions among fintech companies and banks in China,
India and Southeast Asian countries.
Key players operating in the digital lending market are On Deck
Capital Inc., Lendingclub Corp., and Social Finance Inc. (Sofi). On Deck
Capital Inc. focuses on offering lending solutions for small businesses. Lendingclub
Corp. provides lending and financing solutions for both personal and business
loans. Sofi offers personal loans, student loan refinancing, mortgage
refinancing and more through its digital lending platform.
Get More Insights Here
https://www.newsstatix.com/digital-lending-market-size-share-growth-outlook-2023/
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