The global digital lending platform market size, which was valued $5.58 billion in 2019, is projected to reach $20.31 billion by 2027, a report by leading research firm, Valuates Reports, has said. According to the report, the Digital lending platform market will grow at a Compound Annual Growth Rate (CAGR) of 16.7 per cent from 2020 to 2027 as well, according to a press release.
The report said that major factors driving the growth of the market include: Need for faster and more reliable lending procedures; government actions to protect digital lending; increased visibility and options for borrowers and lenders; growing demand for digital lending platforms among MSMEs and a surge in digital lending during COVID- 19. In addition, it stated that technological advances such as AI integration in digital lending platforms and an increase in cloud-based platform usage are likely to give significant opportunities for the digital lending platform market to flourish. According to a press release issued by the firm, “the digital lending platform is becoming more popular among banks as it provides smooth monitoring and increased profitability. Furthermore, it makes it simple for borrowers to apply for loans and provides them with transparency, resulting in significant time savings.
“This automated aspect of the online lending platform allows lenders and borrowers to supply funding solutions with greater precision, decreasing stress and boosting the likelihood of successful loan approval. These advantages are expected to drive the growth of the digital lending platform market.” The statement further said: “Digital lending uses analytics to focus on some of the most important elements of effective end-to-end loan management. It aids in customer onboarding efficiency and speed, as well as improving customer experience. You can reach out to the right customers and increase customer acquisition with lending analytics.
“It also aids in the efficient management of delinquencies and complete loan servicing. Lenders can keep their most profitable customers by enhancing the loan life-cycle value. This in turn is expected to drive the growth of the digital lending market.” According to the report, due to the necessity to automate the entire loan process, which includes loan collecting, processing, and evaluation, the loan origination segment of digital lending market is likely to gain a considerable share during the projection period. It, however, predicted that due to an increase in investment in this solution by various FinTech firms to minimize different types of risk such as credit and fraud risks, operational risks, and compliance risks, the risk and compliance management segment of the market would likely grow at the fastest rate during the forecast period.