1. Market Research
  2. > Financial Services
  3. > Banking Market Trends
Digital Lending Market - Growth, Trends, Forecasts (2020 - 2025)

Digital Lending Market - Growth, Trends, Forecasts (2020 - 2025)

  • October 2020
  • 184 pages
  • ID: 5982372
  • Format: PDF
  • Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

The Digital Lending Market is expected to register a CAGR of approximately 11.9% during the forecast period (2020 - 2025). The Lending landscape has changed drastically over the years due to the rapid adoption of digitization in the BFSI industry. The traditional form of lending still prevails in many parts of the world. However, the benefits provided by the digital solution providers are increasingly paving the way for the adoption of digital lending solutions and services across the enterprises.

- Another major factor driving the growth of the market studied is the changing consumer expectation and behavior due to the several benefits offered by the digitization of banking and financial services. The customers may range from diversified backgrounds and may require the loan for a variety of purposes ranging from personal loans to SME finance and home loans, amongst many others.
- Further, the adoption of several technological advancements, such as the proliferation of adoption of smartphones has led to an increase in the adoption of digital banking across several end-user verticals. Also, technologies like Artificial Intelligence, Machine Learning, and Cloud Computing benefit the banks and fintech as they can process huge amounts of information about customers. This data and information are then compared to obtain results about suitable services/solutions that customers want, which has aided, essentially, in developing customer relations.
- Aire, Kabbage, and Kasisto are some of the most prominent financial sector startups that have fully invested in AI. For instance, Kabbage uses AI algorithms that assess all risks of lending money to a certain customer, and it allows managers of the company to give loans in minimal time. The demand for personalization of their needs among consumers in the fintech and banking companies have further strengthened the demand for AI.
- Moreover, due to the Covid-19 pandemic, SMEs across the globe are facing challenges to raise funds during the crisis to keep their businesses operating. Digital Lending is expected to find several opportunities, especially amongst the SMEs for growth and adoption. For instance, in April 2020, IndiaLends launched Digital Lending 2.0, a range of touchless and contactless products, including loans, insurance, and a line of credit. The new offering is expected to provide its consumers with quick and effective financial solutions during and after the nationwide lockdown paving the way for a new normal.

Key Market Trends
Increasing Number of Potential Loan Purchasers with “Digital Behavior”

- The latest “Expectations & Experiences consumer trends” survey from Fiserv, Inc. a leading global provider of financial services technology solutions, states that almost two thirds of people who have applied for loans in the past two years now do so either partially or fully online, representing a significant increase from 2018. A major portion of this growth is due to increasing usage of smartphone and tablet.
- Millennials who have a few years of work experience and no credit history (or the new-to-credit segment) find that their loans are either not approved, or come at high rates of interest. Moreover, in traditional banks, the “time to decision” for small businesses and corporate lending averages between three and five weeks; Average “time to cash” is nearly three months. Such challenges are driving the “digital behavior” of customers who are turning to mobile devices in order to access the digital lending applications.
- The increase in digital behavior is also augmented by government regulations. For instance, in September 2020, Thailand’s central bank published new measures for the growing digital personal loan market. It also recommended that loan providers apply more digital technology for operational processes such as loan offering, debt repayment, and information disclosure, such as interest rates, fees, and penalties.

Asia-pacific is Dominate the Market

- China’s online lending sector has seen rapid growth in the past decade owing to lack of significant regulations, which has led to an increase in the number of players in the market studied. However, after the first sign of turmoil in 2015 when Ezubao, one of the largest lenders at the time with 900,000 investors, was brought down for fraudulent transactons, China’s regulators began to impose increasingly strict policies, which included the appointment of a custodian bank, full disclosure on the use of investments, and caps on the maximum lending amounts that may be extended to individuals (CNY 1 million) and companies (CNY 5 million).
- The rapid adoption of smartphones, internet access, and a shift toward consumerism in India helped fuel the growth of digital lending enterprises. There are currently 338 online lending start-ups in India that are trying to reduce the gap between lender and creditor through a seamless process.
- Moreover, the government of Japan is launching programs to inculcate cashless behaviors in citizens. The government launched an initiative to increase cashless payments to 40% by 2025. With the increase of the consumption tax from 8% to 10% on October 1, 2019, several discount schemes were implemented, which has subsidizing the installation of cashless payment terminals for merchants and providing 2% or 5% discounts for consumers, when purchasing from registered SMEs or franchise stores.

Competitive Landscape
The competitive landscape of the Digital Lending Market is moderately fragmented owing to the presence of several solution providers, with none of them holding a majority share in the market. The market players are making several innovations to improvise their offerings and gain maximum market traction. The emerging players in the market are strategically raising funds to provide innovative and technologically integrated solutions. The market players are also viewing strategic collaborations as a lucrative path towards growth.

- June 2020 - A Mumbai-based digital loan provider, InCred, with loans, such as home loans, business loans, and personal loans, acquired Qbera, another digital lending platform. With the acquisition of Qbera, InCred is aiming to strengthen its digital distribution business.
- January 2020 - PayU, the payments, and fintech business of Prosus, created a new digital lending provider in India through the merger of LazyPay, PayU’s consumer lending business, with PaySense, one of India’s fastest-growing digital credit platforms.
- August 2019 - Tala, a digital lending startup, raised USD 110 million funding for expansion in India.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

China Retail Banking 2020 - Review, Forecasts, and Future Opportunities

  • $ 5250
  • December 2020
  • 35 pages

China Retail Banking 2020 - Review, Forecasts, and Future Opportunities Summary This report explores trends in the Chinese retail banking sector as well as insight into consumer preferences and behaviors.It ...

  • China
  • Banking
  • Financial Services
  • Industry analysis
  • High Net Worth Individuals Number
  • Real Gross Domestic Product

ref:plp2020

Reportlinker.com © Copyright 2021. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on