GVR Report cover Digital Lending Platform Market Size, Share & Trends Report

Digital Lending Platform Market Size, Share & Trends Analysis Report By Solution (Lending Analytics, Business Process Management, Loan Origination), By Service, By Deployment, By End Use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jun, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-066-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 120

Report Overview

The global digital lending platform market size was valued at USD 4.87 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 24.0% from 2021 to 2028. Initiatives pursued aggressively by financial institutions to enhance the experience for customers are expected to drive the growth of the market over the forecast period. The proliferation of smartphones and the rising rate of internet penetration also bode well for the growth of the market. As such, the benefits offered by digital lending platforms, such as easy accessibility from smartphones, e-signing, and quick decision-making, are expected to contribute to the growth of the market.

U.S. digital lending platform market size, by solution, 2016 - 2028 (USD Million)

The BFSI organizations are aggressively adopting digital business models in line with the changing needs of customers and the growing preference for online lending services. Digitization is particularly allowing BFSI organizations to let customers select the channel of their choice. According to the statistics provided by Deloitte, in 2018, 73% of consumers used online banking channels at least once a month, in comparison to 59% who used mobile banking applications. Online banking applications can especially allow financial service providers to sustain the changing business environment and defend their respective market shares. Thus, the growing use of online banking channels is expected to create the demand for digital lending platforms in current days.

Advances in the latest technologies, such as blockchain, Artificial Intelligence (AI), machine learning, and advanced analytics, coupled with strategic deployment of the latest techniques, such ase-mandates, biometric-enabled authentication, and e-signatures, to mitigate fraud are expected to play a decisive role in driving the growth of the market. Various digital lending platform providers focus on embedding these advanced technologies in their digital lending platforms to enhance their offerings. For instance, in March 2021, Fintern, a digital consumer lender, announced the launch of its consumer lending platform driven by open banking and AI. This launch has helped the company in obtaining an accurate view of borrowers spending behavior and affordability.

At this juncture, a digital lending platform can potentially serve as an end-to-end digital platform designed to help financial institutions in catering to the changing customer expectations and enhancing customer experience. A digital lending platform can offer an omnichannel customer experience for both lenders and borrowers while ensuring efficiency and transparency in the transactions. The growing preference among borrowers for transparent transaction processes is particularly necessitating digital lending platforms.

The increasing volume of payment transactions is creating the demand for online platforms to manage the transaction process. This is expected to drive demand for the digital lending platform to manage transaction processing. The digital lending platform uses industry best practices and customized models along with the existing customer data to automate the lending process. It also eliminates the risk of improper decision-making as it happens in the lending process.

However, challenges, such as concerns over data security and privacy protection, are expected to constrain the growth of the market. Several government bodies across the world have already embarked upon efforts to address the concerns over data security and privacy protection associated with digital lending platforms. For instance, in March 2021, India’s Ministry of Electronics and Information Technology blocked 27 loan lending apps under Section 69A of the Information Technology Act, 2000. Moreover, all digital platforms rely heavily on the backend infrastructure and internet access, which means any technical glitches with the system, power outages, and connectivity issues may leave digital platforms inaccessible to end users. Other challenges, such as higher preference for conventional lending methods and lower levels of digital literacy in underdeveloped countries, are also expected to restrain the growth of the market to a certain extent.

COVID-19 Impact

The outbreak of the COVID-19 pandemic has had a positive impact on the digital lending platform market. Credit unions and banks are particularly enhancing their digital banking offerings to better meet the needs of their customers in the wake of the outbreak of the pandemic. Additionally, in COVID-19, the banks have increasingly started using digital channels for lending loans under the Paycheck Protection Program. The Paycheck Protection Program in the U.S. provides small businesses funds for up to 8 weeks. According to the statistics provided by Numerated, a digital lending platform provider, 82% of businesses in the U.S. choose to apply for PPP loans online during COVID-19 rather than via traditional channels.

Solution Insights

The business process management segment led the market and accounted for more than 30.0% share of the global revenue in 2020. Business process management has gained popularity owing to its potential to minimize operational costs and significantly increase productivity. Benefits, such as flexibility, agility, and the ability to deploy new applications quickly, are also expected to drive the demand for business process management solutions over the forecast period. Moreover, advancements in big data and cloud computing are particularly driving the efficiency of business process management. The rising IT expenditure also bodes well for the growth of the business process management segment over the forecast period.

The lending analytics segment is expected to witness the fastest growth over the forecast period. Lending analytics allow lenders to perform customer segmentation analysis and improve customer acquisition. It also helps lenders in reducing costs, enhancing performance, and augmenting profitability. Several companies offering lending analytics solutions are pursuing strategies, such as mergers and acquisitions, and strategic partnerships, among others, as part of the efforts to enhance their offerings. For instance, in February 2021, Nomis Solutions announced a partnership with Heitman Analytics, a provider of mortgage analytics reporting. The partnership is aimed at helping lending clients in developing strategies based on effective and efficient analysis of data.

Service Insights

The design and implementation segment led the market and accounted for more than 34.0% share of the global revenue in 2020. Financial institutions need a design and implementation framework to support the adoption of digital platforms. The framework can typically help financial institutions in carrying out the lending business operations efficiently. Organizations are imparting these implementation services in their lending platform so that they can be easily integrated with various lending solutions while ensuring regulatory compliance.

The consulting segment is expected to witness the fastest growth over the forecast period. Consultancy services allow credit unions to design training programs for specific needs. Consulting services can also help in improving the way employees, clients, and technology teams operate. Consulting services can thereby make the operations run faster and efficiently. Various companies that provide consulting for digital lending platform providers are focused on strategies such as partnership, merger, and others for strengthening their market position. For instance, in June 2021, Razorvision Consulting, a digital lending technology provider, announced its partnership with NXTsoft, an API connectivity provider. Through this partnership, the former company’s customers will be enabled to integrate Razorvision Consulting’s Fast Cash with their core system for offering a customized experience to its applicants.

Deployment Insights

The on-premise led the market and accounted for more than 68.0% share of the global revenue in 2020. Financial institutions are opting for on-premise digital lending platforms as part of the efforts to annul cyber risks in the wake of the rising number of instances involving data breaches and cyber-attacks. The on-premise deployment also reduces the total cost of ownership as there are hardly any monthly or annual subscription fees involved. However, the fact that implementation of on-premise solutions requires more time as compared to cloud solutions can potentially hinder the growth of the segment.

The cloud segment is gaining traction owing to the continued adoption of innovative practices and a growing preference for cloud-based platforms. Fintech companies are focusing on deploying cloud-based digital lending platforms and pursuing the pay-per-use payment model, which allows companies to minimize the overall operational costs. The payment model also helps to cater to the growing need in back-end operations to simplify the online payment process and customer on-boarding processes. The growing preference for digital channels, such as instant messaging and email, for customer service purposes coupled with the increasing volumes of digitized documents and loan applications, are expected to drive the growth of the cloud segment over the forecast period.

End-use Insights

The banks segment led the market and accounted for more than 30.0% share of the global revenue in 2020. Banks are aggressively focusing on digitalizing their financial services. Stringent regulations and favorable initiatives being pursued by governments of both developed and developing countries are also encouraging banks to adopt digital lending platforms and enhance customer experience. Digital lending platforms typically allow banks to ensure transparency in their loan processes.

Europe digital lending platform market share, by end use, 2020 (%)

The credit unions segment is expected to witness the fastest growth over the forecast period. The growth can be attributed to the fact that digital lending platforms can help credit unions in increasing the client conversion rate. Features associated with digital lending platforms, such as e-signature, and cross-channel support, among others, can particularly benefit credit unions. The e-signature feature can typically help in reducing the processing time and allow credit unions in enhancing customer experience.

Regional Insights

North America segment led the market and accounted for more than 33.0% share of the global revenue in 2020. North America is home to several key market players. The region has also been an early adopter of the latest and advanced technologies. As a result, the demand for digital, end-to-end financial solutions has always been on the higher side in North America. A large mobile workforce in the region is particularly prompting financial institutions in the region to digitalize their services and enhance customer experience. As such, financial institutions in the region are trying to differentiate themselves from their competitors by introducing innovative digital offerings as part of efforts to gain a substantial competitive advantage.

The Asia Pacific region is anticipated to witness significant growth over the forecast period. The growth can be attributed to the increasing number of fintech companies in the region. Factors such as smartphone proliferation and the rising internet penetration rate are also projected to fuel the regional market growth. Moreover, favorable initiatives being pursued by the governments of developing economies, including China, India, and others, are encouraging the use of advanced banking instruments, thereby driving the growth of the regional market.

Key Companies & Market Share Insights

Major players in the market are pursuing strategies, such as new product launches, mutual agreements, and product upgrades, as part of the efforts to cement their market position. They are also focusing on partnerships with banks to enhance customer experience. For instance, in March 2019, Amount LLC partnered with TD Bank, N.A. The partnership envisaged TD Bank leveraging Amount LLC’s platform to enhance its TD Fit loan offering. The platform helped the bank cater to the increasing consumer demand for mobile and digital lending experiences.

Key players are investing aggressively in R&D activities to further develop and expand the capabilities of the solutions they are offering. Market incumbents are also focusing on maintaining and extending the support to their existing solutions while investing in strategic applications incorporating the latest innovations. For instance, Pegasystems Inc. invested USD 181 million in R&D activities in 2018 to develop innovative business solutions. The investment allowed the company to enhance its digital lending platform offerings. Some of the prominent players operating in the global digital lending platform market are:

  • Ellie Mae, Inc.

  • FIS

  • Fiserv, Inc.

  • Newgen Software

  • Nucleus Software

  • Pegasystems Inc.

  • Roostify

  • Sigma Infosolutions

  • Tavant

  • Wizni, Inc.

Digital Lending Platform Market Report Scope

Report Attribute


Market size value in 2021

USD 5.80 billion

Revenue forecast in 2028

USD 26.08 billion

Growth rate

CAGR of 24.0% from 2021 to 2028

Base year of estimation


Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Solution, service, deployment, end use, region

Regional scope

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

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil

Key companies profiled

Ellie Mae, Inc.; FIS; Fiserv, Inc.; Newgen Software; Nucleus Software; Pegasystems Inc.; Roostify; Sigma Infosolutions; Tavant; Wizni, Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global digital lending platform market report based on solution, service, deployment, end use, and region:

  • Solution Outlook (Revenue, USD Million, 2016 - 2028)

    • Business Process Management

    • Lending Analytics

    • Loan Management

    • Loan Origination

    • Risk & Compliance Management

    • Others

  • Service Outlook (Revenue, USD Million, 2016 - 2028)

    • Design & Implementation

    • Training & Education

    • Risk Assessment

    • Consulting

    • Support & Maintenance

  • Deployment Outlook (Revenue, USD Million, 2016 - 2028)

    • On-premise

    • Cloud

  • End-use Outlook (Revenue, USD Million, 2016 - 2028)

    • Banks

    • Insurance Companies

    • Credit Unions

    • Savings &Loan Associations

    • Peer-to-Peer Lending

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • Canada

      • U.S.

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

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