Growing adoption of digital technologies with an increasing use of smartphones for banking applications to drive the digital lending platform market
The global digital lending platform market size is expected to grow from USD 5.1 billion in 2018 to USD 12.1 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 18.7% during the forecast period.
Major growth factors for the market include proliferation of smartphones and mobile devices and organizations' continued focus on digitalization of financial services to enhance customer experience. However, lack of digital literacy among the under developed countries and increasing concerns over data security and privacy in the wake of sophisticated cyber-attacks may restrain the market growth.
Decision automation segment to grow at the highest CAGR during the forecast period
The decision automation segment is expected to grow at the highest CAGR in the digital lending platform market during the forecast period. Decision automation is a vital solution for digital lending users, such as banks, credit unions, and P2P lenders, as it helps in automating the decision process of approving or rejecting a loan application. The growing digital banking sector and an increasing need for enhancing customer experience in the digital lending process could spur the demand for decision management solutions on a large scale.
Business process management segment to account for the largest market size during the forecast period
The business process management segment is expected to hold the largest market size during the forecast period. Business process management solutions are important for digital lending organizations, as the solutions enhance the efficiency of business processes by optimizing them through the use of software and services. Lending organizations and financial institutions are moving toward solutions that can manage the growing complexities arising from the complex business processes. The demand for business process management solutions in the financial industry has surged, due to the complexity involved in integrating operations and these solutions could help solve complex operations.
North America to account for the largest market share, whereas Asia Pacific to grow at the highest CAGR
North America is estimated to hold the largest market size and dominate the global digital lending platform market in 2018. The major growth drivers for the region include advancements in digital technologies and organizations' increasing focus on digitalizing their financial services. Large presence of vendors offering digital lending platforms will further contribute to the market growth in North America.
Asia Pacific (APAC) offers growth opportunities for the major vendors offering digital lending solutions and services, as APAC organizations are adopting digital lending solutions owing to the complexity in handling the huge client base through legacy lending systems. Moreover, the unprecedented growth of smartphone usage in APAC and the financial institutions' focus on monetizing the opportunity for digitalizing their lending services will also contribute to the growth of the APAC digital lending platform market.
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Attractive Market Opportunities in the Digital Lending Platform Market 4.2 Digital Lending Platform Market: Market Share of Major Segments in North America 4.3 Digital Lending Platform Market, By Solution, 2018 4.4 Digital Lending Platform Market, By Country, 2018 4.5 Market Investment Scenario
5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 126.96.36.199 High Proliferation of Smartphones and Growth in Digitalization 188.8.131.52 Need for Better Customer Experience 184.108.40.206 Stringent Government Rules and Regulations for Digital Lending 5.2.2 Restraints 220.127.116.11 Higher Dependency on Traditional Lending Methods 5.2.3 Opportunities 18.104.22.168 Rise in the Adoption of Ai, Machine Learning, and Blockchain- Based Digital Lending Platforms and Solutions 22.214.171.124 Increase in the Demand of Advanced Digital Lending Solutions for Retail Banking 5.2.4 Challenges 126.96.36.199 Data Security and Privacy Concerns Due to Increasing Cyber-Attacks 188.8.131.52 Lack of Digital Literacy in Underdeveloped Countries 5.3 Regulatory Implications 5.3.1 General Data Protection Regulation (GDPR) 5.3.2 Payment Card Industry Data Security Standard (PCI DSS) 5.3.3 Payment Services Directive 2 (PSD2) 5.3.4 Know Your Customer (KYC) 5.3.5 Anti-Money Laundering (AML) 5.3.6 Electronic Identification, Authentication, and Trust Services (EIDAS ) 5.3.7 Health Insurance Portability and Accountability Act (HIPAA) 5.3.8 Federal Information Security Management Act (FISMA) 5.3.9 Gramm-Leach-Bliley Act (GLBA) 5.3.10 Sarbanes-Oxley Act (SOX) 5.4 Use Cases 5.4.1 Adoption of Digital Lending Solutions in the Banking Industry to Unify Loan Processes 5.4.2 Implementation of Digital Lending Solutions in Insurance Companies 5.4.3 Dependence of Financial Services Companies on Digital Lending Solutions 5.4.4 Adoption of Loan Origination Solution Among Retail Banks 5.4.5 Large-Scale Adoption of Digital Lending Solutions for Commercial Banking 5.5 Innovation Spotlight 5.5.1 Fidor Solutions
6 Digital Lending Platform Market, By Component 6.1 Introduction 6.2 Solutions 6.2.1 Asia Pacific to Witness the Highest Growth Rate in the Solutions Segment 6.3 Services 6.3.1 North America to Witness the Largest Market Size in the Services Segment in 2018
7 Digital Lending Platform Market, By Solution 7.1 Introduction 7.2 Loan Origination 7.2.1 Need to Streamline the End-To-End Loan Life Cycle is Leading to the Growth of Loan Origination Solutions in the Digital Lending Platform Market 7.3 Decision Automation 7.3.1 Rising Need of Decision Automation Solution to Automate the Overall Loan Approval Process 7.4 Portfolio Management 7.4.1 Use of Portfolio Management Solutions Across Banks, Owing to the Increasing Complexity to Manage Loan Portfolios 7.5 Loan Servicing 7.5.1 Need for Loan Servicing Solutions Fuelling the Growth of Digital Lending Solutions 7.6 Risk and Compliance Management 7.6.1 Critical Need for Risk and Compliance Management Solutions to Streamline Accounting Operations Across Verticals 7.7 Loan Management 7.7.1 Use of Loan Management Solution to Ease the Entire Loan Life Cycle Management Across the Banking Sector 7.8 Business Process Management 7.8.1 Need for Business Process Management Solutions in the Financial Industry Surged the Growth of Digital Lending Platform Market 7.9 Others 7.9.1 Need for KYC, API Gateway, and Credit Bureau Reporting to Contribute to the Growth in the Digital Lending Platform Market
8 Digital Lending Platform Market, By Service 8.1 Introduction 8.2 Design and Implementation 8.2.1 North America Expected to Have the Largest Market Size in the Design and Implementation Services Segment in 2018 8.3 Training and Education 8.3.1 Europe to Witness the Highest Growth Rate in the Training and Education Segment Owing to the Increasing Need for Assistance During Implementation 8.4 Risk Assessment 8.4.1 Increasing Complexity of Cyber and Financial Risk Generating the Need for Risk Assessment Services 8.5 Consulting 8.5.1 Increasing Awareness of Compliance Requirements in the Financial Industry Driving the Growth of Consulting Services 8.6 Support and Maintenance 8.6.1 Increasing Need for Assistance on Upgrades and Technical Support and Implementation Driving the Growth of Support and Maintenance Services
9 Digital Lending Platform Market, By Deployment Mode 9.2 Introduction 9.3 Cloud 9.3.1 Increasing Need to Reduce the Operational Cost Leading to the Growth of Cloud-Based Digital Lending Platform 9.4 On-Premises 9.4.1 Large Enterprises Deploy On-Premises Digital Lending Platform to Ensure Data Privacy and Security
10 Digital Lending Platform Market, By Vertical 10.1 Introduction 10.2 Banking 10.2.1 Increasing Loan Transaction Volumes Across the Banking Sector Driving the Growth of Digital Lending Platform Market 10.3 Financial Services 10.3.1 Need to Enhance Customer Experience Across the Financial Services Driving the Growth of Digital Lending Platform Market 10.4 Credit Unions 10.4.1 Need for Automation Across Credit Unions to Enhance the Lending Process 10.5 Insurance Companies 10.5.1 Need for Digitalizations in the Insurance Vertical to Strengthen the Lending Process and Dependency on the Intermediate Agents 10.6 Retail Banking 10.6.1 Adoption of Digital Lending Solutions Across Retail Banking to Provide Customers Seamless User Experience 10.7 P2P Lenders 10.7.1 Increase in Venture Funding for P2P Lender Driving the Growth of the Digital Lending Platform Market
11 Digital Lending Platform Market, By Region 11.1 Introduction 11.2 North America 11.2.1 United States 184.108.40.206 US Accounts for the Largest Market Share in North America During the Forecast Period 11.2.2 Canada 220.127.116.11 Canada is Expected to Grow at the Highest CAGR in North America During the Forecast Period 11.3 Europe 11.3.1 United Kingdom 18.104.22.168 Increasing Adoption of Omni-channel Digital Lending Solutions By Financial Institutions Will Fuel the Growth of the Market 11.3.2 Germany 22.214.171.124 Organizations Continuous Focus Towards Enhanced Customer Experience Will Fuel the Demand for Digital Lending Solutions in the Country 11.3.3 France 126.96.36.199 France is Expected to Grow at Highest CAGR Due to the Heavy Investment in Digital Lending Platforms By Government and Other Organizations in the Country 11.3.4 Rest of Europe 11.4 Asia Pacific 11.4.1 China 188.8.131.52 Rapid Economic Developments and the Increased Proliferation of Smartphones are Expected to Drive the Growth of the Digital Lending Platform Market in China 11.4.2 Japan 184.108.40.206 Reduced Cost, Enhanced Customer Experience, and Improved Operational Efficiency of Lending Platforms are Expected to Trigger the Growth of the Digital Lending Platform Market in Japan 11.4.3 India 220.127.116.11 High Adoption of Digital Lending Platforms in Various Verticals, Such as Retail and Consumer Banking, Insurance Companies, Credit Unions, and Financial Institutions Will Fuel the Growth of the Digital Lending Platform Market in Japan 11.4.4 Australia and New Zealand (ANZ) 18.104.22.168 Increasing Adoption of Digital Lending Platforms By Organizations for Improved Productivity Will Boost the Growth of the Digital Lending Platform Market in Japan 11.4.5 Rest of Asia Pacific 11.5 Middle East and Africa 11.5.1 Middle East 22.214.171.124 Consumers are Becoming Internet-Savvy Driving the Digital Lending Platform Market in Middle East 11.5.2 Africa 126.96.36.199 Increasing Focus on Digitalization of Financial Sector is Driving the Growth of Digital Lending Platform Market in Africa 11.6 Latin America 11.6.1 Brazil 188.8.131.52 Rapid Surge in the Usage of Internet and Mobile-Based Applications in the Financial Institutions to Drive the Growth of Digital Lending Platform Market in Brazil 11.6.2 Mexico 184.108.40.206 Proliferation of Cloud Based Digital Technologies Aiding the Growth of Digtial Lending Platform Market in Mexico 11.6.3 Rest of Latin America