Digital Lending Platform Market Size & Share, by Service (Design & Implementation, Training & Education, Risk Assessment, Consulting, Support & Maintenance); Solution (Business Process Management, Lending Analytics, Loan Management, Loan Origination, Risk & Compliance Management); Deployment (On-Premise, Cloud); End-Use (Banks, Insurance Companies, Credit Unions, Savings & Loan Associations, Peer-To-Peer Lending) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

Growth Drivers

• Global smartphone penetration is increasing - In addition to offering the convenience of e-signatures and simple accessibility, DLP is becoming more popular due to rising smartphone usage and internet penetration rates. As of 2024, there are 6.93 billion smartphone users worldwide, or 85.74% of the global population, who own a smartphone.
  
  Furthermore, because DLP needs less paperwork and lowers the possibility of human error, the increased emphasis on digital automation supports the growth of the global industry. The digital lending platform market is expanding as a result of numerous businesses incorporating cutting-edge technologies like blockchain, artificial intelligence (AI), machine learning, and analytics to reduce fraud.
  
  Moreover, the growing frequency of cyberattacks is accelerating its worldwide adoption. According to cybersecurity data, there are 2,200 cyberattacks every day, or one every 39 seconds on average.
• Growing adoption of online banking services - The digitization of lending procedures is happening swiftly as a result of globalization and the growing usage of online banking services. This is one of the main factors influencing how the banking, financial services, and insurance (BFSI) industry uses DLP to save a significant amount of money, improve client experiences, and make better decisions.
  
  In addition, financial institutions across the globe are swiftly employing digital platform to extend credit and manage pandemic challenges amidst the COVID-19 outbreak.
• Emerging new technologies - It is expected that emerging technologies such as blockchain, AI, and machine learning will enhance the functionality of digital lending platform and open up new business opportunities. By using these technologies, the loan-raising process can be made simple, quick, and transparent. Due to AI and machine-learning-based technologies that process loan applications in a matter of seconds, approval timeframes are scalable. Additionally, by eliminating middlemen or intermediaries from the loan process, the blockchain-based lending platform establishes a direct line of communication between lenders and borrowers.

Challenges

• Problems with infrastructure and network connectivity - The world's poor and underdeveloped countries continue to rely on antiquated telecommunications infrastructure that is unable to provide high-capacity, low-latency connectivity. A bad customer experience can result from slow internet. Because digital lending companies provide all of their services online, poor service quality will result from a slow connection.
  Digital lending solutions are extremely challenging to adopt in areas without high-speed internet. Despite the lengthy approval delays, businesses in these nations rely more on offline lending choices since in-person contacts offer a better understanding and customer experience.
• It is anticipated that privacy and data security will restrain industry expansion. Numerous governments worldwide have initiated measures to tackle apprehensions over data security and privacy protection linked to digital lending platform.
• One of the main factors that could prevent the digital lending platform market from growing is the increased reliance on traditional lending techniques.