The digital lending market has witnessed significant growth in recent years owing to the rising adoption of personal loans as well as financial products through mobile applications and web platforms. Digital lending offers various advantages over traditional lending such as simplified and faster loan application process, flexible repayment options, and transparency of interest rates and terms. This has increased the accessibility and affordability of personal financing solutions for consumers. Digital lending is transforming the banking industry by leveraging technologies such as artificial intelligence, machine learning, and analytics to automate credit underwriting and risk assessment. Lenders can make instant credit decisions based on large datasets and approve loans in a matter of minutes.
The global digital lending market is estimated to be valued at US$ 620.92 Bn in 2024 and is expected to exhibit a CAGR of 13.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the digital lending market is the rising adoption of AI and advanced analytics. AI capabilities allow digital lenders to analyze thousands of data points in real-time to make more informed credit decisions. Advanced analytics helps in assessing risks more comprehensively by considering alternative data sources such as financial transactions, email datasets, social media activities etc. This enables lenders to expand credit access to more customers including those with insufficient credit histories. AI-driven solutions are also playing a critical role in automating workflow activities like due diligence checks, document verification, collections and recoveries. As a result, AI-based digital lending platforms are gaining widespread acceptance amongst Fintechs and traditional banks.
Threat of new entrants: The threat is moderate as new entrants require significant investment to set up infrastructure and build trust with customers. However, digital technologies have lowered barriers to entry.
Bargaining power of buyers: The bargaining power is high due to availability of various lending options. Customers can easily switch to other lenders offering better terms.
Bargaining power of suppliers: The bargaining power is low as digital lending platforms utilize generic technologies that are easily available from different providers.
Threat of new substitutes: The threat is high from alternative financing options like peer-to-peer lending, crowdfunding etc. that offer convenience to customers.
Competitive rivalry: The rivalry is intense among digital lending platforms focusing on niche customer segments and geographies.
The Global Digital Lending Market Size is expected to witness high growth over the forecast period.
North America is projected to dominate the market during the forecast period. Early adoption of digital technologies, strong digital infrastructure and presence of major lending platforms are driving growth of digital lending in the region.
Key players operating in the digital lending market are Pacific Biosciences of California, Inc., Oxford Nanopore Technologies, Ltd., BGI Genomics Co., Ltd., F. Hoffmann-La Roche AG, Illumina, Inc., Thermo Fisher Scientific Inc., QIAGEN N.V., Agilent Technologies, Inc., GenapSys Inc., Loop Genomics, Nabsys, Inc., Genia Technologies, Inc., Stratos Genomics, Inc., GATC Biotech AG, Phase Genomics, Inc.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it