Digital lending platform is a mortgage point-of-sale (POS) tool that manages the loan process through an online platform. The digital lending platform market helps businesses to improve user experience in order to attract new users from the financial services ecosystem. Digital lending platforms offers various benefits such as free up customer time, mobile features and eSigning, reduced cost, and quicker decisioning.
It also offers highly customized user experience, ease of entering data quickly, and streamlined loan application procedures. Most of the small and mid-sized enterprises are implementing digital platform for lenders that can utilize the time they save in engaging clients in non-digital relationship-building activities by using digital lending platform and due to this factor, the digital lending platforms market is expected to grow.
Also, digital lending platforms optimizes loan underwriting procedure at reduced cost and offers more efficient lending process and superior portfolio performance.
Impact of COVID-19 Pandemic Outbreak on Digital Lending Platforms Market
The COVID-19 pandemic outbreak has created disruption in many industries, including the financial services sector. The COVID-19 outbreak has led to a collapse in cash-payment transaction by 30% owing to people hoarding cash for unforeseen circumstances amidst country-wide lockdown.
DLAI, an association of digital lenders have put forward a slew of demands to the government and the regulator to come out of the economic impact due to the lockdowns and curfew impacting lending activities and collections due to closures of businesses.
The primary USP of digital lenders lies in their business agility to serve small businesses more quickly than their larger competitors with innovative and personalized products. Lending fintechs have launched innovative products such as ‘anti-lockdown loans’ with flexible repayment plans and ‘Digital Lending 2.0,’ providing contactless loans for affected businesses. Amid the COVID-19 pandemic, due to financial instability, the market is expected to decline by nearly 120 BPS in H1, 2020 as compared to 2019.
Digital Lending Platforms Market: Drivers and Restraints
Rise in the adoption of AI, machine learning, and Blockchain-based digital lending platforms and solutions has boosted the demand for digital lending platforms for the past few years.
The global digital lending platforms market is expected to witness significant growth during the forecast period, which can be attributed to the increasing adoption of solution such as loan origination, decision automation and others to protect traders and investors to increase transparency across financial transactions worldwide.
The continuous development of advanced technologies such as artificial intelligence, IoT, cloud, and network analytics are playing an important role in driving the growth of digital lending platform market.
However, the higher dependency on traditional lending methods is one of the major factor which may hinder the growth of digital lending platform market in near future. Also, the interoperability and lack of digital literacy in underdeveloped countries are some of the factors which may limit the adoption of digital lending platforms.
Digital Lending Platforms Market: Competition Landscape
Some of the prominent players in digital lending platforms market are -
- Fiserv, Inc.
- Newgen Software Technologies Limited
- Ellie Mae Inc.
- Cre8tech Labs Inc.
- Decimal Technologies, among others.
Digital Lending Platforms Market: Regional overview
Based on the region, digital lending platforms market has been segmented into North America, Europe, East Asia, Latin America, South Asia & Pacific, and MEA. On geographic basis, North America is anticipated to hold the largest market share in terms of revenue, owing to the increasing adoption of cloud based digital ending platform by various enterprises in this region.
East Asia & Europe are expected to grow at highest growth rate during the forecast period due to rapid digitalization and rise in technologies and organization which offers better customer experience.
South Asia & Pacific and Latin America also offers potential growth opportunities in digital platform market due to due to the high penetration of smartphones and high internet penetration rates enabling digital payments.
The digital lending platforms market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with Digital Lending Platforms market attractiveness as per segment. The digital lending platforms market report also maps the qualitative impact of various market factors on digital lending platforms market segments and geographies.
The report covers exhaustive analysis on:
- Digital Lending Platforms Market Segments
- Digital Lending Platforms Market Dynamics
- Digital Lending Platforms Market Size
- Supply & Demand Analysis
- Current Trends/Issues/Challenges
- Competition & Companies Involved in the Market
- Impact of COVID-19 on market growth
- Value Chain Analysis
- Digital Lending Platforms Market Drivers and Restraints
Regional analysis includes:
- North America (U.S., Canada)
- Latin America (Mexico, Brazil, Rest of Latin America)
- Europe (Germany, Italy, U.K, Spain, France, BENELUX, Russia and Rest of Europe)
- East Asia (China, Japan, & South Korea)
- South Asia & Pacific (India, ASEAN, Australia & New Zealand, Rest of South Asia)
- Middle East and Africa (GCC Countries, Turkey, South Africa, Rest of MEA)
- Detailed overview of parent digital lending platforms market
- Changing digital lending platforms market dynamics in the industry
- In-depth digital lending platforms market segmentation
- Historical, current, and projected digital lending platforms market size in terms of value
- Recent industry trends and developments
- Competitive landscape
- Strategies of key players and products offered
- Potential and niche segments, geographical regions exhibiting promising growth
- A neutral perspective on market performance
- Must-have information for market players to sustain and enhance their market footprint
Digital Lending Platforms Market: Segmentation
The digital lending platforms market has been segmented on the basis of component, deployment, industry and region.
On the basis of component
- Loan Origination
- Decision Automation
- Loan Management
- Design and Implementation
- Support and Maintenance
On the basis of deployment
On the basis of industry
- Banking, Financial Services, and Insurance (BFSI)
- Consumer Goods and Retail
- Aerospace and Defense
- Energy and Utilities
Market Research Methodology - Perfected through Years of Diligence
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