Digitization in Lending Global Market Report 2024

The digitization in lending market size has grown exponentially in recent years. It will grow from $12.24 billion in 2023 to $15.26 billion in 2024 at a compound annual growth rate (CAGR) of 24.8%. The growth observed in the historic period can be attributed to several factors, including increased internet accessibility, a transition towards paperless transactions, the introduction of online loan marketplaces, a demand for instant loan approvals and disbursements, and the emergence of mobile banking applications.

The digitization in lending market size is expected to see exponential growth in the next few years. It will grow to $37.13 billion in 2028 at a compound annual growth rate (CAGR) of 24.9%. The anticipated growth in the forecast period can be attributed to the sustained increase in demand for digital lending solutions, the expansion of peer-to-peer lending platforms, the growth of online marketplaces, and the adoption of blockchain technology for secure transactions. Key trends expected in this period include the development of digital identity verification solutions, the integration of voice and chatbot technologies, the evolution of robo-advisors and automated financial planning tools, the growth of decentralized finance (DeFi) platforms, the rise of subscription-based lending models, and the development of decentralized identity solutions.

The growth of digitization in lending is being driven by the increasing adoption of digital banking and payments. Digital lending refers to banking conducted through digital platforms, eliminating paper-based transactions such as demand drafts and checks. Digital banking and payment platforms offer unmatched convenience, enabling customers to access banking services and conduct transactions anytime, anywhere, using their mobile devices or computers. This shift towards digital banking is evident, with an estimated 93% of Brits using online banking in 2022, and an additional 10% intending to get a digital-only bank account in 2023. By 2028, the number of digital-only bank account holders is projected to reach 22.6 million, indicating a significant growth trajectory for digitization in lending.

Key players in the digitization of the lending market are focusing on strategic partnerships to enhance their technological capabilities, streamline operations, and offer innovative lending solutions. These partnerships involve formal agreements between organizations to collaborate on specific business objectives while maintaining independence. For example, Epic River integrated its web platform with Finastra’s LaserPro loan documentation system in March 2024 to streamline loan closing processes for community banks and credit unions. This partnership facilitates automatic data transfer, reducing manual entry and ensuring accuracy, while also addressing the need for agility and innovation in financial institutions.

In October 2022, Rapid Finance acquired Thrive, aligning with its goal of modernizing business finance and delivering value to clients. Thrive provides an end-to-end digital lending platform for banks, non-bank lenders, and credit unions, complementing Rapid Finance's offerings in online financial services for small and medium-sized businesses.

Major companies operating in the digitization in lending market are Goldman Sachs Bank, SoFi Technologies Inc., Affirm Holdings Inc., LendingClub, LoanDepot, Upstart Holdings, Lendio, Zopa Bank Ltd., Prosper Marketplace Inc., Avant LLC, Kabbage, Funding Circle, Credible Labs Inc., OnDeck Capital, Marlette Funding LLC, Rapid Finance, BlueVine, CommonBond, Payoff Inc., LightStream, StreetShares Inc., Circleback Lending Inc., Peerform.

North America was the largest region in the digitization in lending market in 2023. The regions covered in the digitization in lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the digitization in lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Digitization in lending refers to the conversion of traditional lending processes into digital formats, utilizing technology to streamline and improve the efficiency of loan origination, underwriting, approval, and servicing. This transformation enables borrowers to apply for loans online, submit necessary documents digitally, and receive real-time updates on their application status, offering a seamless and convenient experience.

The main categories of digitization in lending are online and offline. Online lending involves the digital delivery of loans, enabling borrowers to apply for, receive approvals, and manage loans entirely through digital platforms. These loans can range from small to medium and large amounts, accessible via smartphones and computers. The application of digitization in lending spans various loan types, including business loans, personal loans, mortgage loans, and auto loans.

The digitization in lending market research report is one of a series of new reports that provides digitization in lending market statistics, including the digitization in lending industry global market size, regional shares, competitors with the digitization in lending market share, detailed digitization in lending market segments, market trends, and opportunities, and any further data you may need to thrive in the digitization in lending industry. These digitization in lending market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The digitization in lending market includes revenues earned by entities by providing services for online loan applications, electronic document submission and processing, automated underwriting processes, and digital signatures. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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