July 21, 2024

Digital Lending Covid-19 Impacts Driving Growth

The global Digital Lending Market is estimated to be valued at US$ 334.7 Million in 2022 and is expected to exhibit a CAGR Of 26.9% over the forecast period from 2022 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The digital lending market involves lending through online and other digital platforms. It enables lenders to quickly assess borrowers’ creditworthiness and sanction loans in a fast, seamless manner. Digital lending offers several advantages over traditional lending such as simplified application process, faster disbursal of loans in just a few minutes, and easy repayment through digital modes. It has become essential especially after the COVID-19 pandemic as social distancing norms compelled many to switch to contactless digital financial services.

Market key trends:

The digital lending market is witnessing increased adoption driven by key trends:

One of the major trends is the growing preference for contactless financial services amidst the COVID-19 pandemic. The social distancing norms enforced worldwide have accelerated digital adoption across various industries including financial services. Digital lending provides a completely online, paperless and contactless borrowing experience preferred by many during the pandemic.

Another key trend is the rising penetration of smartphones and internet connectivity. Increased internet and smartphone usage particularly in developing regions has improved accessibility of digital financial products including digital loans. This has expanded the potential customer base for digital lenders globally.

Porter’s Analysis

Threat of new entrants: The digital lending market has moderate threat from new entrants due to significant capital requirements and presence of established players in the market.

Bargaining power of buyers: Individual borrowers have high bargaining power in the digital lending market due to availability of numerous financing options.

Bargaining power of suppliers: Financing providers and banks have moderate bargaining power due to dependence on them for capital requirements of lending platforms.

Threat of new substitutes: There is low-moderate threat from substitutes like traditional banking loans and peer-to-peer lending platforms in the digital lending market.

Competitive rivalry: The digital lending market experiences high competitive rivalry due to presence of numerous global and regional players.

Key Takeaways

The global Digital Lending Market is expected to witness high growth, exhibiting CAGR of 26.9% over the forecast period, due to increasing financial inclusion through easy access to loans via digital platforms.

Regional analysis: North America dominated the global digital lending market in 2021 with a share of over 35%, owing to high smartphone and internet penetration. Asia Pacific is expected to witness fastest growth during the forecast period supported by growing young population and rising internet users in countries like India and China.

Key players:


Key players operating in the digital lending market are On Deck Capital Inc., Lendingclub Corp., and Social Finance Inc. (Sofi). On Deck Capital Inc. specializes in online small business lending solutions while Lendingclub Corp. provides personal loans, home loans and auto refinancing loans via its online platform. Sofi offers student loan refinancing, personal loans, mortgages and investing and banking products.


  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it