How Is The Global Digitization In Lending Market Defined?
Digitization in lending refers to the transformation of traditional lending processes into digital formats, leveraging technology to streamline and enhance the efficiency of loan origination, underwriting, approval, and servicing. It allows borrowers to apply for loans online, upload necessary documents digitally, and receive real-time updates on their application status, providing a seamless and convenient experience.
Digitization In Lending Global Market Report 2024 provides data on the global digitization in lending market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Digitization In Lending market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Are The Global Digitization In Lending Market Size And Growth Rates Projected To Evolve?
The digitization in lending market has grown exponentially, from $12.24 billion in 2023 to $15.26 billion in 2024, at a compound annual growth rate (CAGR) of 24.8%. This growth is due to expanded internet accessibility, a shift towards paperless transactions, the rise of online loan marketplaces, demand for instant loan approvals and disbursements, and the emergence of mobile banking applications. The market is projected to reach $37.13 billion by 2028 at a CAGR of 24.9%, driven by continued demand for digital lending solutions, expansion of peer-to-peer lending platforms, growth of online marketplaces, and adoption of blockchain technology for secure transactions. Major trends in the forecast period include the development of digital identity verification solutions, integration of voice and chatbot technologies, the evolution of robo-advisors and automated financial planning tools, growth of decentralized finance (DeFi) platforms, the rise of subscription-based lending models, and development of decentralized identity solutions.
What Are The Essential Drivers Behind The Growth Of The Digitization In Lending Market?
The shift towards digital banking and payments is expected to drive the growth of the digitization in lending market. Digital lending involves conducting banking transactions through digital platforms, eliminating paper-based processes like demand drafts and checks. Digital banking and payment platforms offer convenience, allowing customers to access banking services and conduct transactions from anywhere using mobile devices or computers. For example, in July 2023, Finder.com reported that about 93% of Brits used online banking in 2022, with an additional 5.3 million Brits (10%) planning to open digital-only bank accounts in 2023. By 2028, the number of digital-only bank account holders is expected to reach 22.6 million (43%). Thus, the growing shift towards digital banking and payments is driving the digitization in lending market.
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How Is The Global Digitization In Lending Market Divided Into Key Segments?
The digitization in lending market covered in this report is segmented –
1) By Type: Online, Offline
2) By Loan Amount: Small Loans, Medium Loans, Large Loans
3) By Deployment: Smartphone, Computer
4) By Application: Business Loan, Personal Loan, Mortgage Loan, Auto Loan
What Trends Are Reshaping The Future Of The Digitization In Lending Market?
Companies in the digitization of the lending market are forming strategic partnerships to enhance their technological capabilities, streamline operations, and offer innovative lending solutions. Strategic partnerships involve collaborative agreements between organizations to achieve specific business objectives. For instance, in March 2024, Epic River, a US-based web platform for banking, integrated with Finastra’s LaserPro loan documentation system to simplify loan closing processes for community banks and credit unions. This partnership automates the transfer of borrower data, reduces manual entry, and improves accuracy, addressing the need for agility and innovation in financial institutions.
What Is The Fastest Growing Region In The Digitization In Lending Market?
North America was the largest region in the digitization in lending market in 2023. The regions covered in the digitization in lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
