Emerging technologies like blockchain, artificial intelligence, and machine learning are anticipated to improve the capabilities of digital lending platforms and create new avenues for expansion. North America emerged as the largest global digital lending platform market, with a 41% market revenue share in 2022.
Newark, Nov. 16, 2023 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the USD 12.2 billion digital lending platform market will reach USD 46.4 billion by 2032. Globally, open banking’s increasing significance opens up new avenues for market expansion. Lenders may effectively aggregate borrower data, including credit score, past loan history, and current outstanding debts, owing to open banking. This enables lenders to make decisions more quickly and provide specialised loan options that are tailored to the demands of their customers. To enhance their lending process, several financial service providers are teaming up with open banking providers. 87% of the lenders surveyed in Credit Kudos’ October–November 2021 study said they intended to use open banking technology in the UK by 2023.
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Key Insights on
North America to account for the largest market size during the forecast period.
North America is expected to have the essential digital lending platform market share. It is anticipated that the existence of significant digital lending providers in North American nations will support the growth of the regional market. Additionally, the area was a pioneer in the application of innovative technologies. Consequently, there has always been a strong need for digital, end-to-end financial solutions in North America. Furthermore, the adoption of new technology, the expansion of the fintech sector, and the growing need for quick and easy financing services are some driving forces in North America. As a result, the market for digital lending platforms has expanded.
The business process management segment dominated the market with the most significant revenue of USD 2.68 billion.
The business process management segment dominated the market with the most significant revenue of USD 2.68 billion. Since business process management can significantly increase productivity while lowering operational expenses, it has become increasingly common. Concurrently, the benefits of business process management in lending—including enhanced customer satisfaction and employee efficiency, decreased errors, and less need for paper—are anticipated to propel the segment’s expansion.
The design & implementation segment dominated the market with the most significant revenue of USD 3.05 billion.
The design & implementation segment dominated the market with the most significant revenue of USD 3.05 billion. The design and implementation segment offers advantages, including operational cost savings and an adaptable and agile administration approach.
The on-premise segment dominated the market with the most significant revenue of USD 7.80 billion.
The on-premise segment dominated the market with the most significant revenue of USD 7.80 billion. Financial institutions are choosing on-premise digital lending platforms to reduce cyber risks in response to the rising number of data breaches and cyberattacks. Businesses may decide about system updates and upgrades and have total control over their data when using on-premise solutions.
The banks segment dominated the market with the most significant revenue of USD 4.14 billion.
The banks segment dominated the market with the most significant revenue of USD 4.14 billion. Segment’s growth is expected to be driven by banks’ increasing emphasis on digitising their financial services. Through strict regulations and beneficial programmes, governments in both developed and developing countries are pushing banks to embrace digital lending platforms and enhance the client experience.
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Market Dynamics:
Drivers: Rising penetration of smartphones
In addition to offering the convenience of e-signatures and simple accessibility, DLP is becoming increasingly popular due to rising smartphone usage and internet penetration rates. Furthermore, because DLP needs less paperwork and lowers the possibility of human error, the increased emphasis on digital automation supports the growth of the global industry. The market is expanding due to numerous businesses incorporating cutting-edge technologies like blockchain, artificial intelligence (AI), machine learning, and analytics to reduce fraud. Moreover, the growing frequency of cyberattacks is accelerating its worldwide adoption.
Restraint: Regulatory challenges
Digital lending platforms must adhere to various laws and regulations because they operate in several jurisdictions, which can be difficult and expensive. Furthermore, breaking the law can result in fines, penalties, and possibly a suspension of business. This is because digital lending platforms must abide by the many regulatory frameworks for lending in different nations. For example, lending is highly regulated in certain nations, and businesses must apply for licences and adhere to stringent lending standards to operate. Conversely, some nations might have less restrictive laws, enabling businesses to function more freely. Consequently, this poses a serious challenge to businesses wishing to grow internationally.
Opportunity: Growing popularity of online banking
As more people turn to internet banking for their financial requirements, there is a greater pool of potential borrowers available for digital lenders to pursue. Additionally, online banking has simplified the process for users to access their financial data, keep an eye on their accounts, and manage their finances whenever and wherever they choose. Because of this, digital lenders are now in a more effective and convenient position to connect with prospective borrowers and make loan offers to them via mobile apps and online platforms.
Challenge: Cybersecurity risks
Sensitive financial and personal data is gathered, stored, and transmitted while using digital platforms for lending, leaving it open to data breaches and cyberattacks. Additionally, a single cyberattack or data breach can cause serious harm to digital lenders’ finances and reputations and undermine client trust. This may lead to a drop in the market’s growth and demand for digital lending services.
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Some of the major players operating in the digital lending platform market are:
● Nucleus software
● FIS
● Tavant
● ICE Mortgage Technology
● Intellect Design Arena Ltd
● Pegasystems Inc.
● Sigma Infosolutions
● Temenos
● Fiserv inc
● Newgen Software Technologies Limited
Key Segments cover in the market:
By Solution:
● Lending Analytics
● Loan Origination
● Loan Management
● Business Process Management
● Risk & Compliance Management
● Others
By Service:
● Design & Implementation
● Risk Assessment
● Support & Maintenance
● Training & Education
● Consulting
By Deployment:
● Cloud
● On-premise
By End-User:
● Insurance Companies
● Savings & Loan Associations
● Banks
● Credit Unions
● Peer-to-Peer Lending
● Others
About the report:
The global digital lending platform market is analyzed based on value (USD billion). All the segments have been analyzed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report offers an in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining critical insight into the market. The study includes Porter’s five forces model, attractiveness analysis, raw material analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.
About The Brainy Insights:
The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients’ objectives of high-quality output within a short span of time. We provide both customized (clients’ specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients’ requirements whether they are looking to expand or planning to launch a new product in the global market.
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