About Digitization in Lending
Digitization in lending is an advanced type of lending and borrowing process used by financial institutions to reduce the risk of fraud & nonperforming assets and fasten the loan lifecycle. It uses digital platforms to carry out all the lending-related processes without the need for any paperwork. It helps to automated lending processes such as document and electronic data to provide the customers with faster lending services. More than two-thirds of mid-and large-sized fintech companies have adopted digitization in lending various loans. Currently, over 3.5 billion people are regular Internet users. By 2022, 56% of the total world population will have two or more connected devices and there will be ~5 billion internet users globally. Considering the increasing internet penetration the demand for digitization in lending is expected to grow rapidly in the forecast period.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
Global digitization in lending market is fragmented due to the presence of several software providers. The level of competition among the companies in the digitization in lending market is intense and software providers focus on developing new technologies and offering customization to the customers. During the coming years, a number of companies will also follow partnership, merger, acquisition and other strategies to sustain in this competitive market Analyst at AMA Research estimates that United States and United Kingdom Players will contribute the maximum growth to Global Digitization in Lending market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
CashNetUSA (United States), Prosper Marketplace, Inc.(United States), FirstCash, Inc. (United States), Elevate Credit, Inc. (United States), Opportunity Financial, LLC(United States), Speedy Cash (Canada), Rapid Finance (formerly RapidAdvance) (United States), Avant, Inc. (United States), LendUp (United States), Wonga Group (United Kingdom), Amigo Loans Ltd. (United Kingdom) and Kabbage, Inc. (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Fundation Group LLC (United States), Lending Stream (United States), Lendio (United States), Headway Capital Partners LLP (United Kingdom), On Deck Capital (United States), Blue Vine (United States) and Trigg (United States).
Segmentation Overview
AMA Research has segmented the market of Global Digitization in Lending market by Type (Personal Loans, Auto Loans, Business Loans, Home Loans and Other) and Region.
On the basis of geography, the market of Digitization in Lending has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Industry Vertical, the sub-segment i.e. Banks will boost the Digitization in Lending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Deployment Model , the sub-segment i.e. On-Premises will boost the Digitization in Lending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Component, the sub-segment i.e. Solution/Software {Loan Origination System, Loan Management System, Risk & Compliance Management System, Point of Sale (PoS) Systems, Lending Analytics, Collection & Recovery System, Other} will boost the Digitization in Lending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Integration Of Blockchain & Artificial Intelligence
Market Growth Drivers:
Growing Adoption Of Digital Channels By Fintech Companies To Improve Customer Experience, Rising Penetration Of Smartphones & Tablets and Adoption Of Digital Lending In Banking Industry
Challenges:
Data Safety & Security Issues and Higher Dependency on Traditional Lending Methods
Restraints:
Lack Of Interoperability And Privacy Issues
Opportunities:
Demand Of Advanced Digital Lending Solutions For Retail Banking and Favorable Government Initiatives & Regulations
Market Leaders and their expansionary development strategies
In Nov.2020, BBVA USA partnered with Prosper to offer a home equity line of credit (HELOC) through its website, the U.S. subsidiary of the Madrid-based bank. This helped Prosper Marketplace, Inc. to expand its presence in digitization in lending market
In December 2020, Bank of Baroda launched the digital lending platform with aim to have paperless process for retail customers. This platform enables prospective retail loan seekers to get loans digitally as per their convenience.
Key Target Audience
New Entrants/Investors, Analysts and Strategic Business Planners, Digitization in Lending Providers, Cloud Service Providers, Venture Capitalists and Private Equity Firms, Government Regulatory and Research Organizations and End Use Industry
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.