AI Platform Lending Market size is expected to cross USD 90 billion by the end of 2033, witnessing around 25% CAGR during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of AI platform lending was USD 70 billion. The growth of the market can primarily be attributed to the exponential increase in digital transformation spending across the globe. For instance, in 2022, worldwide spending on digital transformation (DX) was valued at around USD 2 trillion and is further expected to drop to approximately USD 3 trillion by 2025. An increasing number of smartphone and computer users owing to rising disposable income and internet penetration across the world. Smartphones make everything so easy and offer many facilities at the fingertips. To improve better customers, reach many lending companies launched smartphone apps such as KreditBee, mPokket, and others. On the contrary apps such as Snapmint work similarly to credit cards, providing EMI options, and rewards with the simple verification of certain documents through smartphones. Thus, digitalization has changed loan processing very simple and fast for customers.
Global AI platform lending market trends such as a significant escalation in IT spending and a higher number of populations borrowing loans from banks, are projected to influence the growth of the market positively over the forecast period. It is estimated that over 20 million people in America have personal loans in 2022, up from the base of 19 million people in 2020. People take out loans to achieve their short or long-term goals. Even though many are against borrowing money, there are situations where financial help is necessary. Some of these situations include a business, health needs, education, or a dream house. Therefore, people borrow money from friends, relatives, or banks. More people borrow money from banks as they lend large amounts of funds in a short span with less interest cost to meet their needs, the EMI facility provided helps everyone to pay the loan in several small payments rather than a single full payment. Moreover, the spike in the number of financial institutions is further expected to hike the growth of the market over the forecast period. For instance, in 2021, around 125 financial institutions were estimated to be functioning worldwide. Hence, all these factors are expected to hike the growth of the market over the forecast period.
Growth Drivers
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023-2033 |
|
CAGR |
~25% |
|
Base Year Market Size (2022) |
~ USD 70 Billion |
|
Forecast Year Market Size (2033) |
~ USD 90 Billion |
|
Regional Scope |
|
End-user (Bank, Educational Institution, Government Organization)
The global AI platform lending market is segmented and analyzed for demand and supply by end-user into bank, educational institution, government organization, and others, out of which, the bank segment is anticipated to witness major growth over the forecast period. The growth of the segment can be accounted to the rising number of banks and their users. In 2018, the number of banks worldwide was anticipated to be around 45,000. The automation and digitization of banks increase the preference of people for banks for their financial support. More government and private banks are increasing their branches in rural and urban areas to increase their turnover. The banks initiated many policies for farmers with less interest in improving customers and loan transactions in public and private banks. The regulations and documentation process required for loan processing are increasing the adoption of AI tools in the banking sector, which in turn drives the growth of the market segment.
Type {Natural Language Processing (NLP), Deep Learning (DL), Machine Learning (ML)}
The global AI platform lending market is also segmented and analyzed for demand and supply by type into natural language processing (NLP), deep learning (Dl), machine learning (ML), and others. Amongst these three segments, the machine learning segment is expected to garner a significant share. ML and AI-based lending help to save time and energy by using raw data very efficiently. The ML application in finance helps to automate many tasks, including calculation, data monitoring, claim to process, and paper works. This reduces labor costs and improves customer service. Customer behavior can be easily analyzed and their preferences can be generated by ML and AL in IoT devices. Algorithm trading, detection of fraud activities, security portfolio management, high-frequency trading, chatbot creation, risk management, trade settlements, customer acquisition, onboarding automation, and asset valuation are done through ML in many financial institutions.
Our in-depth analysis of the global market includes the following segments:
|
By Type |
|
|
By Functionality |
|
|
By AI Type
|
|
|
By End-User
|
|
North American Market Forecast
The North American AI platform lending market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the spiking digital banking activities and the rising number of credit card holders. For instance, around 1.05 billion credit cards were observed to be utilized in the United States alone in 2021, and the number is further projected to grow Y-O-Y. Credit cards are used by most people as they are convenient, and secure, with no interest for a certain period of time, and even give rewards and credits. Credit cards are safer to carry, help to keep track the spending, and easy way to increase credit scores. Also, a credit card gives financial stability to a person as the loan can be paid after a tenure of one month which allows time to plan a budget. Large purchases can be made through credit cards with less or no interest and an EMI option that can be paid over the long term. The grace period of credit cards aids to manage last-minute purchases or emergency expenses that are not in the budget and cannot be delayed. Also, it provides many discounts and cashback on credit card purchases. Additionally, escalating number of bank users in the region is further expected to push the growth of the market over the forecast period.
Tavant is to unveil its two products at the MBA Annual that are AI-powered and for Touchless Lending. Touchless Lending facilitates an end-to-end mortgage manufacturing pipeline along with mortgage processing and automated underwriting.
Sigma Infosolutions to collaborate with Colve.AI to enhance its business intelligence solutions. It is estimated to help the company to enlarge the eCommerce economy and provide AI-powered recommendation solutions for the growth of sales
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?