Analysis of the Demand and Growth in the Digital Lending Market, With a Forecast Extending to 2030

By  //  July 22, 2022

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The digital lending market is growing rapidly, as consumers and businesses alike turn to the internet for quick and easy access to loans. This analysis report takes a look at the current state of the market, including key drivers of demand and growth. Additionally, it provides a forecast for the development of the market up until 2030. So what does the future hold for digital lending? Keep reading to find out!

How lending institutions are turning to digital solutions to satisfy customer needs?

In the current business environment, it is essential for lending institutions to provide digital solutions that satisfy customer needs. The demand for online lending has grown rapidly in recent years, and this trend is expected to continue. In response to this demand, a number of companies have emerged that offer online lending services.

The growth of the digital lending market can be attributed to a number of factors. First, there is an increasing preference among consumers for convenient and easy-to-use online services. Second, the proliferation of mobile devices and the availability of high-speed Internet access have made it possible for more people to access online lending services. Third, many traditional lenders have been slow to adopt new technologies, which has created opportunities for startups and other innovative companies to enter the market.

Why does the demand for digital lending is growing at a rapid pace?

There are numerous factors that have contributed to the rapid growth in demand for digital lending. One of the primary drivers is the increasing number of consumers who are turning to online channels for their financial needs. According to a report from eMarketer, 43% of US adults say they would be more likely to use an online lender than go to a traditional bank or credit union for a loan.

The convenience and speed of online lenders such as KashPilot are other key factors driving the demand for these services. Consumers can typically apply for and receive loans much faster through online channels than through traditional banks. In addition, online lenders often have lower fees and interest rates than traditional lenders, making them a more attractive option for borrowers.

Finally, the rise of alternative credit scoring models is making it easier for consumers with less-than-perfect credit to qualify for loans. This is opening up the market to a larger pool of potential borrowers and helping to drive demand for digital lending services.

Looking ahead, the demand for digital lending is expected to continue growing at a rapid pace. This will be driven by continued consumer adoption of online channels, improvements in technology and data analysis, and the expansion of alternative credit scoring models. As a result, we expect the market for digital lending to more than double in size over the next five years.

If you’re looking to enter the digital lending space or grow your existing business, now is an excellent time to do so. The market is growing rapidly and there is significant opportunity for companies that are able to provide convenient, fast, and affordable loan products to consumers.

The current state of the digital lending market and its projected growth by 2030

The digital lending market is currently valued at $5.58 billion and is expected to grow at a 11% compound annual growth rate (CAGR) to reach $83 trillion by 2030. The first thing to note about the digital lending market is that it is still relatively young and has flexible means of meeting the consumer’s financial needs even with a bad credit score. 

The first online lender only emerged in the late 1990s, and it wasn’t until 2005 that the industry began to take off in earnest with the launch of Prosper, one of the first peer-to-peer (P) lending platforms.

Since then, we’ve seen rapid growth in both the number of lenders operating in the market and the total value of loans originated. In fact, between 2013 and 2018, the market grew at a compound annual growth rate (CAGR) of 16.7%.

The global lending market is expected to reach $83 trillion by 2030

As digital lending continues to grow in popularity, the overall value of the lending market is also expected to increase. In fact, according to a recent report by Boston Consulting Group, the global lending market is expected to reach $83 trillion by 2030, up from $73 trillion in 2020. This represents a compound annual growth rate (CAGR) of approximately 11 percent from 2020 to 2030.

To arrive at this forecast, the Boston Consulting Group considered a number of factors, including:

– The increasing prevalence of online and mobile banking. More and more consumers are comfortable conducting financial transactions online or through their mobile devices, which has made it easier for digital lenders to reach them.

– The growing popularity of peer-to-peer (P) lending platforms. These platforms connect borrowers with individual investors who are willing to fund their loans, which can often result in lower interest rates than what’s available from traditional banks.

– The increasing use of big data and machine learning by lenders to assess creditworthiness. Lenders are becoming increasingly sophisticated in their use of data, which has allowed them to assess the riskiness of potential borrowers better and offer loans to a wider range of people.

– Regulatory changes in some markets have opened the door to digital lenders. In many countries, regulations governing lending are much stricter than they are for other financial products like deposits or payments. However, we’re starting to see regulatory changes in some markets that are making it easier for digital lenders to operate.

These trends are all likely to continue in the coming years, resulting in strong growth for the digital lending market. In particular, we expect platforms will play an increasingly important role in the market, as they are able to offer lower costs and faster decision times than traditional banks.

If you’re interested in getting involved in the digital lending market, now is a great time to do so. With its strong growth potential, there are many opportunities for lenders to get in on the action and capture a share of this rapidly growing market.

Author’s Bio: Jordan Trae Sander

Personal Finance Writer at KashPilot | Website | + posts

Jordan was an editor and writer for a variety of financial websites including KashPilot, focusing on credit cards and loans, and bank accounts. The aim of his work is to create relevant content that allows people to make informed financial decisions. When he’s not creating personal financial information, Jordan is a self-help author and world traveler who aids travelers to travel across the globe and discover their uniqueness.