India Digital Lending Platform Market
India Digital Lending Platform Market Size Zooming 2.3X at Robust CAGR of 15.44% to Touch USD 148 Million by 2029
Published | 06 November 2023
India digital lending platform market is flourishing because of the growing adoption of digital channels to improve customer experience and further deepening penetration of internet, mobile internet, and smartphones.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India digital lending platform market size at USD 62.55 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the India digital lending platform market size to boom at a robust CAGR of 15.44% reaching a value of USD 148 million by 2029. Major growth drivers for the India digital lending platform market include the deepening internet and smartphone penetration and increasing adoption of digital channels. As more customers use digital channels via smartphones and increased internet access, these platforms are essential for 40–60% of loan acquisition transactions across various loan categories. Commercial banks are also actively participating, offering digital lending services or collaborating with Non-Banking Financial Companies (NBFCs) to create synergies. Digital lending companies streamline processes, requiring only a reference bank account for loan disbursement, leading to a significant increase in loans processed through digital channels. The popularity of Buy Now Pay Later (BNPL) schemes, especially among younger consumers, is contributing to substantial growth in the India digital lending platform market. However, cybersecurity threats is anticipated to restrain the overall market growth during the forecast period.
India Digital Lending Platform Market – Overview
The India digital lending platform market refers to the sector within India's financial industry that specializes in providing digital solutions and platforms for the lending and borrowing funds. These platforms leverage technology, such as mobile apps and web-based applications, to facilitate the entire lending process, from loan application and approval to disbursement and repayment. They may offer a wide range of financial products, including personal loans, business loans, consumer credit, and more, often using data analytics and innovative business models to assess creditworthiness and streamline the lending experience. The market is characterized by its rapid growth, driven by the increasing use of smartphones, internet penetration, and the adoption of advanced technologies like Artificial Intelligence (AI).
Impact of COVID-19 on India Digital Lending Platform Market
COVID-19 pandemic adversely affected the India digital lending platform market. In its initial stages, it brought challenges, including an increase in lender defaults, growing counterparty and operational risks, and a significant credit crunch for Non-Banking Financial Companies (NBFCs). The period from 2013 to 2019 saw a rise in gross non-performing assets of NBFCs from 3.6% to 6.6%. However, the pandemic also spurred innovations and adaptation within the digital lending sector, driven by the need for contactless transactions and remote services. Many platforms adopted stringent risk assessment models and incorporated alternative data sources to evaluate borrower creditworthiness. Also, co-lending, a marketplace model, emerged as a response to mitigate risks and improve credit flow. In the long run, the pandemic accelerated the digital transformation of the lending industry, making it more resilient and adaptable to changing circumstances.
India Digital Lending Platform Market – By Deployment
Based on deployment, the India digital lending platform market is bifurcated into On-Premises and Cloud segments. The cloud segment dominates the India digital lending platform market primarily due to its scalability, cost-efficiency, and accessibility. Cloud-based solutions offer greater flexibility and the ability to rapidly adapt to changing market demands. They eliminate the need for extensive infrastructure investments and provide remote access, making them more suitable for the digital lending industry's dynamic and evolving landscape. Also, cloud-based platforms facilitate faster deployments, which align with the fast-paced nature of the digital lending sector, giving them a competitive edge over on-premises solutions.
Major players operating in the India digital lending platform market include Ellie Mae, Inc., FIS, Fiserv, Inc., Newgen Software, Nucleus Software, Pegasystems Inc., and Roostify. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the India Digital Lending Platform Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the India Digital Lending Platform Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing qualitative and quantitative data to boost the performance of your business solutions. BlueWeave has built its reputation by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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- India Digital Lending Platform Market, By Solution (Business Process Management, Lending Analytics, Loan Management, Loan Origination, Risk & Compliance Management); By Service (Design & Implementation, Training & Education, Risk Assessment, Consulting, Support & Maintenance); By Deployment (On-premises, Cloud); By End User (Banks, Insurance Companies, Credit Unions, Savings & Loan Associations, Peer-to-Peer (P2P) Lending); By Region (North India, South India, East India, West India), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
Publish Date: November 2023
Increasingly high adoption of digital channels to improve customer experience and deepening penetration of internet and smartphones are projected to propel the expansion of the India digital lending platform market during the forecast period between 2023 and 2029.
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