Businesses in the banking financial service industry (BFSI) are rapidly implementing digital business models. The movement towards digitization will help companies cater to borrowers’ preferences and cut costs throughout the mortgage process.
According to Insider Intelligence's Mobile Banking Competitive Edge Study, 89% of survey respondents stated that they use mobile banking. Moreover, a huge 97% of millennials indicated that they use mobile banking as well. Currently, 1.9 billion customers use mobile or online banking, and as they continue to do so, experts believe this will drive demand for digital lending platforms too.
According to Verified Market Research, the Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028, growing at a CAGR of 18.13% from 2021 to 2028.
Digital lending platforms can be used by bankers, insurance companies, credit unions, and lenders to ensure they account for growing preference in online financing services. Digital platforms offer solutions to business process management, lending analytics, loan management, loan origination, compliance management, and much more.
The lending analytics segment is expected to have the fastest growth in the forecast period. The digital platforms enable lenders to lower costs, improve performance, and increase profitability. Lenders can also analyze consumer segmentation and optimize consumer acquisition.
Platforms also offer services such as design, training, risk assessment, consulting, and maintenance. The consultancy segment currently has the largest market share, since credit unions use consultancy services to create training that is relevant and personalized. Consultancy services can also help functions operate more quickly and efficiently.
Major players in the digital lending platform market include: Fiserv (US), Newgen Software (India), Ellie Mae (US), FIS (US), Mambu (Germany), CU Direct (US), Argo (US), Sigma Infosolutions (US), Tavant Technologies (US), Docutech (US), Roostify (US).
North America is expected to have the largest market share in digital lending platforms, due to their numerous suppliers and the region’s early exploration into this technology. However, Asian-Pacific regions are forecasted to grow digitization at a rapid pace, owing to an increase in government efforts for digital lending platforms.
Click here to read more reports by Verified Market Research, including Digital Workplace Market and Digital Experience Management Market.
