The world is being taken over by a wave of digitalization. Many sectors are being digitalized with an aim to ease numerous functions. It is worth noting that the financial vertical has also been revolutionized with the advent of digital transaction and lending processes. Digital lending allows people to apply for loans and receive instant approvals via online platforms without the need for lengthy paperwork. The hectic lifestyle of the masses leaves them with less time to physically visit a financial institution to get their loans approved. This has created several opportunities in the market for digital lending.

Brandessence market research has recently released a report titled Global Digital Lending Market Outlook (2022-2029)” that provides valuable insights into the current state and future growth prospects of the market. The report highlights market drivers and challenges, the competitive landscape, and an in-depth analysis of the ongoing R&D activities in this sector. This report is an essential resource for industry stakeholders seeking to leverage the expanding opportunities in the Digital Lending Market.

Key Takeaways

  • Global Digital Lending Market is reckoned to amplify with a CAGR of +12% over 2022-2029.
  • Increasing adoption of smartphones and internet connectivity along with the escalating demand for quick and hassle-free loan processing are aiding industry outlook.
  • Based on deployment mode, the cloud segment is likely to garner significant returns over the stipulated timeline due to their ease of use and affordability.
  • MEA is expected to experience significant growth in the coming years, due to several factors such as increasing internet and smartphone penetration and growing demand for online financial services.
  • The Global Digital Lending Market was worth ~USD 11.6 billion in 2019 and is anticipated to reach a valuation of ~USD 24.3 billion by 2027, registering a CAGR of +12% over the assessment timeline of 2022-2029.

Digital lending refers to the process of offering and obtaining loans through digital channels, such as websites, mobile applications, or other digital platforms. It involves the use of technology to streamline and automate the lending process, from loan origination and underwriting to loan servicing and collection. Digital lending typically involves the use of advanced analytics and algorithms to assess creditworthiness, determine loan terms, and manage risk. The use of digital lending platforms can result in faster loan processing times, reduced costs, and increased access to credit for borrowers who may not have been able to obtain loans through traditional lending channels.

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Elaborating the key trends and dynamics of the Global Digital Lending Market

Increasing adoption of smartphones and internet connectivity along with the escalating demand for quick and hassle-free loan processing are augmenting the outlook of this business vertical. Furthermore, rising penetration of digital banking and financial services and the increasing popularity of alternative lending models are creating lucrative opportunities for this marketplace to prosper. Besides, emergence of peer-to-peer lending platforms, growing use of artificial intelligence and machine learning for credit scoring, and booming e-commerce sector are adding significant momentum to the industry progression.

Major growth drivers

Increasing adoption of digital technologies: The growth of digital lending can be attributed to the increasing adoption of digital technologies, which have made it easier and more efficient for lenders to process loan applications and disburse funds. Digital lending platforms offer a streamlined, online application process that can be completed from anywhere, reducing the time and costs associated with traditional lending processes.

Technological advancements: The continued advancements in technology, including artificial intelligence and machine learning, are expected to drive the growth of the digital lending market by improving the efficiency and accuracy of lending processes. These technologies can be used to analyze vast amounts of data and automate decision-making processes, reducing the need for human intervention and increasing the speed and accuracy of loan processing.


Regulatory standards: Digital lending is a highly regulated industry, and lenders must comply with various laws and regulations at the national and state levels. Meeting these regulatory requirements can be challenging and costly for digital lending companies, especially as regulations continue to evolve.

Digital Lending Market Competitive Landscape   

The prominent players are defining the competitive terrain of the Global Digital Lending Market are Fiserv, ICE Mortgage Technology, FIS (US), Newgen Software, Nucleus Software, Temenos, Pega, Sigma Infosolutions, Intellect Design Arena, Tavant, Docutech, Cu Direct, Abrigo, Wizni, Built Technologies, Turnkey Lenders, Finastra, and RupeePower.

Segmental Assessment

By offering, the solutions segment is reckoned to amass notable gains over 2022-2029. This is because solutions such as digital loan origination, loan management systems, and credit decisioning platforms are in high demand from financial institutions looking to streamline their lending processes and offer a seamless digital experience to their customers.

Based on deployment mode, the cloud segment is likely to garner significant returns over the stipulated timeline due to their ease of use and affordability.

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Geographical Analysis & Landscape

Middle East & Africa

The Digital Lending Market in the Middle East and Africa (MEA) is expected to experience significant growth in the coming years, due to several factors such as increasing internet and smartphone penetration, growing demand for online financial services, and government initiatives to promote digitalization of financial services. The region is home to a large unbanked population, which provides a vast untapped market for digital lending providers. Additionally, the adoption of digital lending solutions is seen as a way to increase financial inclusion, particularly for small and medium-sized enterprises (SMEs) and individuals who have limited access to traditional banking services.

Europe Digital Lending Market

In Europe, this market is growing rapidly, driven by the increasing adoption of digital technologies and the rising demand for online lending services. The market is expected to see significant growth in the coming years, with several countries in the region, including the UK, Germany, and France, leading the way in terms of digital lending adoption. The growth of the market is also being supported by favorable government initiatives aimed at promoting digital lending, as well as the presence of a well-established financial infrastructure.

Opportunities in the Digital Lending Market

Use of alternative data sources: Digital lenders are able to use a wider range of data sources to assess creditworthiness and manage risk, including social media, mobile phone usage, and other non-traditional data points. This allows lenders to more accurately evaluate a borrower’s creditworthiness and offer loans to individuals who may not have a traditional credit history.


Credit risk management: As with any lending activity, managing credit risk is a key challenge for digital lending companies. With digital lending, the risk of default can be higher as borrowers may have limited credit histories or may be seeking loans for non-traditional purposes. Digital lenders must develop effective credit scoring models and risk management strategies to minimize losses and maintain profitability.

Major Developments in Digital Lending Market


In November 2020, Danish fintech Cardlay acquired a German digital lending platform, offering businesses access to credit and flexible payment solutions.

In January 2021, the Dutch bank Rabobank acquired a majority stake in the digital lending platform Floryn, aimed at small and medium-sized enterprises (SMEs) in the Netherlands.


In March 2021, the UK-based digital lending platform Market Finance announced a partnership with Barclays Bank, under which Barclays will provide £50 million in lending capital to support Market Finance’s lending to SMEs.

Porter’s Five Forces Analysis

Threat of new entrants: The threat of new entrants into the digital lending market is relatively low due to the high capital requirements and regulatory barriers to entry. New entrants would need to invest significant resources in technology, data analytics, and marketing to establish themselves in the market.

Bargaining power of suppliers: The bargaining power of suppliers in the digital lending market is moderate, as there are a limited number of suppliers of key inputs such as technology platforms, data analytics tools, and credit scoring models. However, the increasing competition in the market is giving borrowers more bargaining power to negotiate favorable terms.

Bargaining power of buyers: The bargaining power of buyers in the digital lending market is high, as they have access to multiple lenders and can easily compare loan offers. This puts pressure on lenders to offer competitive rates and attractive terms to attract borrowers.

Threat of substitutes: The threat of substitutes in the digital lending market is moderate, as traditional lending institutions such as banks and credit unions are still active in the market. However, the convenience and speed offered by digital lenders are making them a more attractive option for borrowers.

Competitive rivalry: The competitive rivalry in the digital lending market is intense, as there are many players competing for market share. This is driving innovation and increasing the range of products and services offered to borrowers, but it also puts pressure on lenders to differentiate themselves and offer better terms to attract borrowers.

On Special Requirement Digital Lending Market Report is also available for below region:

North America

  • U.S, Canada


  • GermanyFrance, U.K., ItalySpainSwedenNetherlandsTurkeySwitzerlandBelgium, Rest of Europe


  • South KoreaJapanChinaIndiaAustraliaPhilippinesSingaporeMalaysiaThailandIndonesia, Rest Of APAC

Latin America

  • MexicoColombiaBrazilArgentinaPeru, Rest of Latin America

Middle East and Africa

  • Saudi Arabia, UAE, EgyptSouth Africa, Rest Of MEA

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