Growing digitization across financial institutions and internet penetration coupled with proliferation of smartphones is driving digital lending platform market trends. Due to rising demand among financial institutions to reduce operating costs through streamlined operations across all borrower and lender interactions, adoption of digital lending platforms is estimated to gain traction.
Digital lending platform integrates advanced technologies, including machine learning, AI, e-signature, biometric-enabled authentication, blockchain and advanced analytics, in order to improve credit risk decision, enable zero human touch monitoring & lending and enhance business decisions that ultimately facilitate smooth money lending process along with efficient monetary tractions.
How will integration of digital lending platforms in automotive loan segment propel digital lending platform market outlook over the forecast period?
Increasing use of mobile banking for repayment of loans, rapid urbanization and surging trends for digitalization are driving digital lending platform market size. Consumers are progressively using digital lending platforms to avail automotive loans due to various benefits, including minimal documentation, transparent & fast loan processing and lower interest rate when compared to traditional lending.
Automobile dealers are increasingly using digital lending platforms to offer customers flexible repayment methods, collateral-free loans, and affordable loan options. The integration of AI and advanced analytics in digital lending platforms for automotive loans enable consumers in making credit decisions with less costly underwriting, quicker approval and disbursal of loans.
How will PoS digital lending contribute to the overall digital lending platform market share?
Fintech companies are increasingly using data from PoS machines to calculate related credit risk, loan tenure and approved amount. These credit decisions are backed by several advanced technologies including AI, blockchain and machine learning.
For instance, NeoGrowth, a leading NBFC company, developed a digital lending platform that used PoS machine data of merchants and raised over $90 million from investors. PoS digital lending system is estimated to witness significant growth of over 24% over the forecast timespan.
What factors will shape North America digital lending platform trends?
Supportive government policies across North America to promote the use of digital banking solutions are acting as major driving force for digital banking market growth. According to the America Bankers Association, digital platforms are already being used by over 50% large banks in the North America along with over 38% smaller banks to deliver their lending services to customers.
In 2018, North America accounted for the highest share in digital lending platform market, due to the high adoption of digital end-to-end banking solutions in the region.