Digital lending platform to reach $ 17 billion by 2025



The digital lending platform market is expected to exceed $ 17 billion by 2025. The growth of the market is attributed to increasing demand from financial institutions, such as banks and NBFCs, to reduce the risk of fraud and fraud. Postcode. Increasing digitization and rapid adoption of the cloud in financial institutions are proliferating the growth of the market. (Source: Global Market Overview Inc.)

The integration of advanced technologies, such as AI, ML, blockchain and advanced analytics, with the digital lending platform secures and speeds up loan processing, approval and disbursement. The growing internet penetration coupled with the proliferation of smartphones across the world is supporting the growing use of the digital lending platform to qualify for a loan. Financial institutions that deploy these advanced technologies focus on specific use cases to improve the cost and operation of basic infrastructure.

The proliferation of smartphones and tablets supports digitization across the world. This helps financial companies reach a wider audience to promote their loan products through a short advertisement or notification on smartphones and tablets. The emergence of technological advancements, such as electronic signature, biometrics, and cloud platforms, to store digital documents has made the digital lending process faster, hassle-free and cost-effective.

The cloud-based digital lending platform is expected to post a significant CAGR during the forecast period. Growing demand from financial institutions for documentation storage, rapid processing, and reduced loan processing time and costs is contributing to the proliferation of the cloud-based digital lending platform. In addition, it decreases the service and maintenance needs of the digital lending platform, improving operational efficiency and reducing downtime. The availability of the pay-as-you-go business model in both software-as-a-service and cloud-based offerings in the digital lending platform improves future flexibility and low initial cost for financial institutions.

Supporting government initiatives are increasing the use of online payment methods to combat money laundering and fraudulent transactions. For example, in November 2016, the Indian government announced the demonetization of all Mahatma Gandhi series INR 500 and INR 1000 banknotes, which propelled the use of digital payment methods in India. This helps financial institutions to obtain the financial and personal data of individuals and organizations, which further helps them to check the creditworthiness of credit applicants. It reduces the risk of postcode and fraud.

The government intends to encourage healthy competition to create a sustainable and efficient industry with many new technological players entering the market to offer innovative solutions. The government wants to ensure the stability of the digital lending platform system as a whole by managing emerging bubbles and potential system risks and identifying new ways to support technologies that drive market growth.

FinTech Segment Expected to Post Significant CAGR over the Forecast Period. FinTech companies, which specialize in multiple lending services, such as P2P loans, SME finance loans, personal loans, and auto loans, receive substantial investments to grow and provide loans to loan applicants. potential credit. Angel investors and financial institutions with generous pockets invest in these fintech companies. For example, in 2018, North American fintech companies received over $ 9.10 billion in funding and Asia-Pacific tech companies received over $ 5.80 billion in funding. of dollars. These companies focus on narrow target customers, such as employees above the salary of $ 300, to offer loans ranging from $ 150 to $ 1,500. The increase in venture capital funding for FinTech companies, coupled with growing consumer confidence in FinTech companies, is driving the rapid adoption of the digital lending platform. Additionally, it helps them develop innovative digital lending solutions, flexible payment methods, and demographically focused products.

The technology partnership in the digital lending industry is expected to improve customer engagement and a faster and more transparent credit lending experience for customers. Tech leaders should benefit digital lenders from the risks of NPAs and bad debt.

Financial technology companies offer unsecured loans at low interest rates, and they approve and grant short-term loans to individuals and organizations. This meets the demand for smaller personal loan for several social occasions. In addition, it supports the growth of SMEs that previously faced loan approval problems due to unavailability of collateral. The growth of SMEs is an important factor in improving the country’s GDP.

Major Players in Digital Lending Platforms Market Focus on Various Business Growth Strategies such as strategic alliances and the development of innovative digital lending solutions. Strategic alliances allow them to expand their existing portfolio and increase their geographic reach. For example, in April 2019, Xiaomi partnered with KreditBee to offer loans to MIUI users in India over the age of 18. The loan amount ranges from 14.53 USD (1000 INR) to 1,453.10 USD (100,000 INR).

Source : https://www.gminsights.com/industry-analysis/digital-lending-platform-market


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