The digital lending market comprises of lending platforms that facilitates online credit applications, loan appraisals, disbursement and collection of payments. Digital lending platforms have transformed traditional lending process by offering higher approvals rates, quicker loan disbursements, efficient underwriting by utilizing artificial intelligence and data analytics.
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 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Emergence of novel technologies
The key driving factor for growth of digital lending market has been emergence of advanced technologies like artificial intelligence, machine learning and analytics. These innovative technologies are being leveraged by digital lending platforms to gain deeper customer insights, optimize risk assessment and improve overall lending operations. AI algorithms can analyze thousands of data points within seconds to assess creditworthiness accurately. Advanced analytics help identify hidden patterns and predict customer defaults with high degree of accuracy. Leveraging such novel technologies allow digital lenders to approve higher number of loan applications and offer customized lending solutions to customers. This in turn is expected to fuel growth of digital lending market over forecast period.
Strength: Digital lending enables faster loan approval processes and provides a better customer experience through online access and mobile capabilities. It allows financial institutions to serve more customers in a cost-effective manner.
Weakness: Cybersecurity and privacy issues pose risks as digital lending involves collection and storage of large amounts of customer data online. Regulatory compliance also presents challenges due to the dynamic nature of technology.
Opportunity: The growing adoption of smartphones, increased internet penetration, and rising financial inclusion in emerging markets present significant growth opportunities. Digital lending helps expand access to credit for the underbanked population.
Threats: Stiff competition from fintech startups threatens the market position of traditional banks. New technologies like AI and blockchain could disrupt existing business models.
Global Digital Lending Market Size is expected to witness high growth.
North America currently dominates the market owing to rapid FinTech adoption and presence of key market players in the US and Canada. Asia Pacific is poised to grow at the fastest pace during the forecast period with increasing smartphone and internet penetration in countries like India and China.
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.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it