Digitization in Lending Market Report 2026

The digitization in lending market size has grown exponentially in recent years. It will grow from $19 billion in 2025 to $23.73 billion in 2026 at a compound annual growth rate (CAGR) of 24.9%. The growth in the historic period can be attributed to increasing internet and smartphone penetration, rising demand for quick credit access, expansion of digital banking services, growing acceptance of online financial services, increasing use of data-driven underwriting.

The digitization in lending market size is expected to see exponential growth in the next few years. It will grow to $54.46 billion in 2030 at a compound annual growth rate (CAGR) of 23.1%. The growth in the forecast period can be attributed to increasing adoption of ai-based risk assessment, rising demand for personalized lending products, expansion of embedded lending models, growing regulatory support for digital finance, increasing focus on financial inclusion. Major trends in the forecast period include increasing adoption of end-to-end digital loan origination, rising use of automated credit scoring models, growing integration of e-kyc and digital documentation, expansion of mobile-based lending platforms, enhanced focus on faster loan disbursement.

The increasing shift towards digital banking and payments is expected to drive the growth of the digitization in lending market going forward. Digital lending involves banking through a digital platform, eliminating all paper-based transactions, such as demand drafts, pay-in slips, and checks. Digital banking and payment platforms provide exceptional convenience, allowing customers to access banking services and conduct transactions anytime and anywhere using their mobile devices or computers. Digitization in banking offers digital banking solutions, enabling companies to deliver online banking services to their customers. For example, in July 2025, according to the European Central Bank (ECB), Germany-based central bank for the euro, e-money payment transactions in the euro area grew by 2.6% year-on-year in the second half of 2024 to reach 4.6 billion, while their total value rose by 15.8% to €0.3 trillion compared with the same period in 2023. Consequently, the shift towards digital banking and payments is fueling the growth of the digitization in lending market.

Major companies operating in the digitization of the lending market are concentrating on forming strategic partnerships to improve their technological capabilities, optimize operations, and provide innovative lending solutions. Strategic partnerships are formal agreements between two or more organizations to collaborate on specific business objectives while retaining their independence. For example, in March 2024, Epic River, a US-based web platform offering new banking concepts, partnered with Finastra’s LaserPro loan documentation system to simplify loan closing processes for community banks and credit unions. The collaboration with Finastra allows for the automatic transfer of borrower data from Epic River to LaserPro, reducing manual entry and ensuring data accuracy. This partnership also meets the demand for agility and innovation in financial institutions, decreasing errors and delays in loan processing. Finastra is a UK-based financial software company.

In August 2023, Equifax Inc., a US-based data, analytics, and technology company, acquired Boa Vista Serviços S.A. for an undisclosed amount. Through this acquisition, Equifax seeks to expand its presence in the Brazilian credit bureau market and improve its data, identity, and fraud solutions throughout Latin America by leveraging Boa Vista’s extensive consumer database and market knowledge. Boa Vista Serviços S.A. is a Brazil-based consumer credit bureau that focuses on delivering credit reports, analytics, and risk management solutions.

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 2025. The regions covered in the digitization in lending market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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