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Digital Lending Platform Market Size & Share, 2026 | Industry Report

Digital Lending Platform Market Analysis Report By Solution, By Service, By Deployment, By End Use, By Region And Segment Forecasts From 2019 To 2026

Report ID: MN17620117  |  Published: September 2020  |  No of Pages: 120
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The global digital lending platform market size was accounted for USD 3.5 billion in 2018 and projected to grow at a CAGR of 20.7% over the forecast period, from 2019 to 2026. Rising focus on enhancing and personalizing customer experience among financial institutions has majorly driven the market growth. In addition, rapid shift towards traditional to digital lending and rising necessity to minimize loan processing time among borrowers and lenders are projected to surge the market growth.

The digital lending platform aids in mitigating business, regulatory, and operational risk among financial institutions through a responsive and configurable approach.  Increasing demand for digital platforms across financial institutions to reduce operational cost by enhancing the operations among all borrowers and lenders are anticipated to witness a positive impact on market growth. Moreover, rapidly changing customer needs coupled with rising adoption of internet services are also encouraging insurance organizations, banking, and financial services to adopt digital business models.

U.S. digital lending platform market

Technological advancements like e-signatures, Artificial Intelligence (AI), block chain, advanced analytics, e-mandates, and biometric-enabled authentication to curb fraud detections are projected to boost the market growth. Digital lending platform plays a vital role to cater to rising demand for enhancing the customer experience via end-to-end digital lending platforms. This platform also comprises omni channel customer experience for lenders and borrowers with speed and transparency. In addition, rising demand for transparent transactions processes among consumers is anticipated to drive the market growth.

The growing demand for digitalization by both customers and financial institutions has led to an increase in the amount of payment transaction data in the marketplace. Hence, to manage the transaction processing, the demand for digital lending platform is increasing. This platform uses customized models and best industry practices by using customer existing data to automate the existing processes. It also helps to curb the risk of incorrect decision making which has commonly happened in traditional lending. It also eliminates the risk of improper decision making that is prevalent in traditional lending.

On the other hand, factors such as data security and privacy concern are expected to hamper the market growth to some extent. In addition, a digital lending platform relies on internet access, any technical glitches or power outage can disable the user’s capability to use digital platforms. Lack of technical skills along with high dependency on traditional lending methods in undeveloped nations are anticipated to restraint market growth.

Solution Insights

In the digital lending platform market, the solution segment is fragmented into loan origination, business process management, risk & compliance management, lending analytics, loan management, and others. In 2018, the business process management segment accounted for the largest market share due to its capability to reduce operational costs and increased productivity. Further, several advantages like ability, agility, and flexibility to deploy new applications quickly are projected to fuel demand for this segment over the forecast period.

Large financial institutions are shifting towards automation which helps to improve customers' experience and reduce the operating time required to execute several back-end processes. In addition, technological advancement in cloud computing and big data offers high productivity in business process management.

Services Insights

In the digital lending platforms market, services segment is bifurcated into risk assessment, training & education, design & implementation, consulting, and support & maintenance. In 2018, the design & implementation segment held the largest market share and accounted for revenue of USD 297.9 million. This segment plays an important role to support the digital platform adopted by financial institutions. Design & implementation framework supports the financial institutions to execute lending business operations very efficiently.

Organizations are incorporating these services in a lending platform that enables them to easily connect with several lending solutions and also maintain the stringent regulations compliances by governments across the globe.

Rising importance of post-purchase services to boost the smooth transition from conventional to digital businesses is creating new opportunities for service providers in this industry.  Rising demand for sophisticated User Interface (UI) designs for resources working in financial institutions is projected to augment further demand for design & implementation segment in the next few years. Design & implementation service helps financial institutions to implement a new cloud-based solution while integrating traditional infrastructure. The above-mentioned factors are projected to fuel the demand for the design & implementation segment.

Deployment Insights

Based on deployment, the market is segmented into the cloud and on-premise. In 2018, on-premise deployment segment accounted for the largest market share and expected to have remarkable growth during the forecast period. Growing number of cyber-attacks and data breaches are enforcing the financial institutions to implement on-premise lending platform to reduce cyber risk. Moreover, on-premise deployment helps to helps in lowering the total cost of ownership due to the availability of zero or monthly or annual subscription payment options, which is expected to drive segment growth.

Europe digital lending platform market

Cloud deployment is gaining momentum in this market due to rising preference for cloud-based solutions and innovative practices among financial institutions. Fintech companies are concentrating on the cloud-based platforms due to their pay-per-use payment service which allows the user to reduce their operational cost. It helps to handle back-end operations including customer on boarding, simplified online process, as well as minimize operating time. Further, growing number of digitized loan applications, digitized document uploads, and rising usage of digital channels like instant email or messaging for client services are expected to propel the segment demand in the near future.

End-Use Insights

On the basis of end-use, the market is segmented into insurance companies, banks, credit unions, peer-to-peer lending savings & loan associations, and others. In 2018, bank segment accounted for the largest market share and projected to retain its position over the forecast period. This is due to the emergence of digitalization in the banking sector and rising focus of banks to digitalize their financial services along with stringent government norms for safety transactions. Financial regulations and government initiatives in both developing and developed nations have enforced banks to implement digital lending platforms solutions to enhance customer services.

Growing penetration of digitalization to enhance the customer experience and rise in customer acquisition through social media are anticipated to propel the front-end customer experience in banks. Additionally, banks are concentrating on merger & acquisition, partnerships with tech giants to enter in the digital lending platform market.  For example, in 2019, KeyBank National Association announced acquisition of Laurel Road for the digital lending business. This acquisition will help the company to improve its digital capabilities by end-to-end lending products and customer-centric technology which is expected to improve transparency in the digital lending platform.

Regional Insights

In 2018, North America held the largest market share and expected to retain its position throughout the forecast period.  This high revenue market share is attributed to the early adoption of technologies, the presence of key market players, and the high adoption of digital end-to-end financial services. Due to the existence of a large number of a mobile workforce, financial institutions in this region are digitalizing their services to enhance their customer experience and services.

In order to sustain in a competitive market, financial institutions in this region are adopting the digital capabilities into their services, thereby, expected to witness significant regional market growth in the next few years.

Asia Pacific is projected to witness considerable growth from 2019 to 2026. This growth is attributed to the growing number of fintech companies in this region. In addition, rising penetration of internet users along with the growing number of smartphone users is expected to boost the regional market growth. Moreover, several government initiatives in emerging countries like Singapore, China, and India to promote advanced technologies in financial institutions is anticipated to propel the market growth in this region.

Impact of COVID-19

The digital lending platform has positively impacted due to COVID-19 pandemic. In most countries, governments have pushed financial institutions for digital payments, especially in emerging economies in order to make payment contactless.

Post COVID-19, many people and small business will require personalized and affordable loan to recover from adverse effect of COVID-19. This factor is expected to propel the market demand for digital lending platform. In addition, technological advancement will play an important role for innovation and risk mitigation. Growing focus of industry players on data analytics and science will curb the risk of data breaches and fraud activities. It will also help to reduce credit complexities generated by COVID-19.

Digital Lending Platform Market Share Insights

The key players include in the market are Sigma Infosolutions; Wizni, Inc.; Pegasystems Inc.; Roostify; FIS; Newgen Software; Nucleus Software; and Tavant. Key players have adopted several marketing strategies such as product development, mutual agreements, and product launches to strengthen their position in the competitive market. Market players are also concentrating on mergers & acquisitions with banks to enhance customer services. For example, in 2019, Amount LLC announced a partnership with TD Bank, N.A. By this partnership, TD Bank will leverage Amount’s platform to strengthen its TD Fit Loan. In addition, this platform will help the bank to fulfill the customer demand for the digital and mobile lending experience.

Tech giants are also investing in R&D activities to enhance the capabilities of existing technologies. Moreover, companies are concentrating on extending and maintaining the support of their availing services and funding in strategic manner which is expected to incorporate new business innovations.  For example, in 2018, Pegasystems Inc. invested around USD 181 million in R&D activities to focus on developing advanced business solutions.

Report Scope



Base year for estimation


Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2026

Market representation

Revenue in USD Billion and CAGR from 2019 to 2026

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa


Country scope

U.S., Canada, Germany, U.K., China, Japan, India, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, and growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2015 to 2026. For the purpose of this study, Million Insights has segmented the global digital lending platform market report based on solution, service, deployment, end use, and region:

• Solution Outlook (Revenue, USD Billion, 2015 - 2026)
    • Business Process Management
    • Lending Analytics
    • Loan Management
    • Loan Origination
    • Risk & Compliance Management
    • Others

• Service Outlook (Revenue, USD Billion, 2015 - 2026)
    • Design & Implementation
    • Training & Education
    • Risk Assessment
    • Consulting
    • Support & Maintenance

• Deployment Outlook (Revenue, USD Billion, 2015 - 2026)
    • On-premise
    • Cloud

• End-use Outlook (Revenue, USD Billion, 2015 - 2026)
    • Banks
    • Insurance Companies
    • Credit Unions
    • Savings & Loan Associations
    • Peer-to-Peer Lending
    • Others

• Regional Outlook (Revenue, USD Billion, 2015 - 2026)
    • North America
        • The U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa

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