India Digital Lending Platform Market
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
- Published Date: November 2023
- Report ID: BWC23905
- Available Format: PDF
- Page: 200
Report Overview
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.
India Digital Lending Platform Market - Industry Trends & Forecast Report, 2029
India digital lending platform market size was estimated at USD 62.55 million in 2022. During the forecast period between 2023 and 2029, the size of India digital lending platform market is projected to grow at a 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 rising prominence of innovative business models, a growing reliance on expedited loan processing and increasing integration of cutting-edge technologies like Artificial Intelligence (AI). As customers increasingly turn to digital channels due to the rising prevalence of smartphones and broader internet access, these platforms are becoming instrumental, influencing a substantial 40–60% of loan acquisition transactions across diverse loan categories. Also, the market witnesses the rapid participation of commercial banks, either independently offering digital lending services or forming collaborations with Non-Banking Financial Companies (NBFCs) to harness synergies. Digital lending companies stand out for their streamlined prerequisites and significantly accelerated processes, necessitating only a reference bank account for loan disbursement. This has led to a noteworthy rise in the percentage of loans processed through digital channels, especially in conjunction with NBFCs. Notably, the market's transformation is further driven by the profound impact of Buy Now, Pay Later (BNPL) schemes, particularly among younger consumers who increasingly prefer these user-friendly BNPL solutions over traditional credit cards, thus propelling substantial growth within the India digital lending platform market.
India Digital Lending Platform Market – Overview
The India digital lending platform market refers to the segment within India's financial industry that specializes in providing digital solutions and platforms for the lending and borrowing of 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. This 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).
India Digital Lending Platform Market
Growth Drivers
Deepening Internet and Smartphone Penetration
The rising penetration of internet and smartphones in India is driving substantial growth in the digital lending platform market. The increased use of smartphones and a growing number of mobile subscriptions, combined with affordable data plans, have not only fostered market expansion but have also increased awareness and adoption of digital lending among the Indian population. This surge in digital lending's popularity is primarily attributed to NBFCs collaborating with a range of digital platforms, including e-commerce, ride-hailing, travel, logistics, and more, which has led to increased acceptance of digital lending across various customer segments in the country. While originally pioneered by NBFCs, digital lending has given rise to new business models, such as Digital Lending Marketplaces, POS Transaction Lending, and partnerships between banks and NBFCs, underscoring the evolving landscape of the India digital lending platform market.
Restraints
Cybersecurity Threats
Cybersecurity threats pose a significant restraint to the India digital lending platform market. As the industry witnesses rapid growth, it becomes an attractive target for malicious actors. The increasing volume of sensitive financial data being processed and stored digitally makes these platforms vulnerable to cyberattacks. Breaches, data theft, and identity fraud not only undermine customer trust but also lead to financial losses and regulatory concerns. To ensure sustainable growth, the digital lending sector must prioritize robust cybersecurity measures, invest in advanced threat detection and prevention systems, and stay ahead of evolving cyber threats to safeguard customer data and maintain market integrity.
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 innovation 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
Segmental Coverage
India Digital Lending Platform Market – By Solution
By solution, the India digital lending platform market is divided into Business Process Management, Lending Analytics, Loan Management, Loan Origination, and Risk & Compliance Management segments. The loan origination segment holds the highest share in the India digital lending platform market by solution, primarily due to its fundamental role in the lending process. The segment serves as the initial gateway for borrowers to apply for loans and for lenders to assess their creditworthiness. It plays a pivotal role in risk management, efficiency, regulatory compliance, and integrating data-driven technologies like alternative data sources and artificial intelligence for more accurate credit assessments. Its central significance and impact on lending operations make it the leading solution in the market.
India Digital Lending Platform Market – By Service
Based on service, the India digital lending platform market is divided into Design & Implementation, Training & Education, Risk Assessment, Consulting, and Support & Maintenance segments. The design & implementation segment holds the highest share in the India digital lending platform market by service. This service is instrumental in customizing and integrating digital lending solutions according to the specific needs of financial institutions and lenders. It involves the creation of user-friendly interfaces, seamless workflows, and robust security measures, ensuring a smooth transition to digital platforms. As digital lending platforms expand, the demand for effective design and implementation services grows, making this segment the dominant player in the market.
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 dominated 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. Additionally, 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.
India Digital Lending Platform Market – By End User
On the basis of end user, the India digital lending platform market is divided into Banks, Insurance Companies, Credit Unions, Savings & Loan Associations, and Peer-to-Peer Lending segments. The banks segment holds the highest share in the India digital lending platform market by end user. It is primarily because traditional banks have embraced digital lending to expand their services and reach a wider customer base. By incorporating digital lending platforms, banks can streamline loan origination, reduce operational costs, and enhance customer experiences. They leverage their existing customer trust and infrastructure to provide digital loan products efficiently. Additionally, the regulatory framework in India supports this digital transformation, making it easier for banks to participate in the digital lending space. As a result, the banks segment has dominated the market, offering a wide array of digital lending solutions to cater to diverse customer needs.
India Digital Lending Platform Market – By Region
Regionally, the India digital lending platform market is segmented as North India, South India, East India, and West India.
Competitive Landscape
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.
Recent Developments
-
In August 2023 - Paytm, a leading fintech company in India, announced its plans to offer small mobile credit. The company provides services like Buy Now-Pay Later (BNPL) and postpaid mini, offering loans as low as INR 250. This strategic focus on lending aligns with the expected growth in India's retail lending market, which is set to reach USD 1 trillion, with a significant share attributed to MSME lending. Additionally, Paytm is investing in Artificial Intelligence (AI) to enhance its risk assessment and fraud prevention capabilities in the financial sector, aiming to provide advanced AI solutions for various financial institutions.
-
In July 2023 - JB Park, President and CEO of Samsung Southwest Asia, highlighted the impact of the 'Make in India' digital lending platform, Samsung Finance+, in making smartphones more affordable for Indian consumers. Launched in 2019, Samsung Finance+ has played a crucial role in driving smartphone sales worth over USD 1 billion by the end of 2022. The platform's approach to spreading payments over a longer period, without upfront costs, has significantly contributed to increasing digital empowerment in India. Samsung's commitment to democratizing technology in India includes offering 5G smartphones for as low as INR 44 per day. Samsung aims to conduct 75% of its smartphone business with 5G devices in 2023.
-
In March 2023 - LoanTap, a digital lending platform, made an undisclosed acquisition of Unofin, a healthcare-focused fintech startup. Through this strategic move, LoanTap plans to harness Unofin's expertise in healthcare financing to expand its presence in India's rapidly growing healthcare sector. Unofin, which has served over 12,000 customers and disbursed INR 120 crore in loans, has established partnerships with 1,600 healthcare service providers across seven cities. This acquisition will not only enhance LoanTap's product offerings but also allow it to tap into the significant growth potential of healthcare financing. It will leverage Unofin's relationships with hospitals and clinics to offer tailored financing solutions and reach a broader customer base.
Scope of the Report
Attributes |
Details |
Years Considered |
Historical Data – 2019–2022 |
Base Year – 2022 |
|
Estimated Year – 2023 |
|
Forecast Period – 2023–2029 |
|
Facts Covered |
Revenue in USD Million |
Market Coverage |
India |
Product/ Service Segmentation |
Solution, Service, Deployment, End User, Region |
Key Players |
Ellie Mae, Inc., FIS, Fiserv, Inc., Newgen Software, Nucleus Software, Pegasystems Inc., Roostify |
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 Lending
By Region
-
North India
-
South India
-
East India
-
West India
- Research Framework
- Research Objective
- Product Overview
- Market Segmentation
- Executive Summary
- India Digital Lending Platform Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Increasing adoption of digital channels to improve customer experience
- Increasing internet and smartphone penetration
- Restraints
- Cybersecurity threats
- Opportunities
- Advancements in technology
- Challenges
- Data privacy and security concerns
- Growth Drivers
- Technological Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- India Digital Lending Platform Market Overview
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Solution
- Business Process Management
- Lending Analytics
- Loan Management
- Loan Origination
- Risk & Compliance Management
- Others
- 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 Lending
- Others
- By Region
- North India
- South India
- East India
- West India
- By Solution
- Market Size & Forecast, 2019–2029
- North India Digital Lending Platform Market
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Solution
- By Service
- By Deployment
- By End User
- Market Size & Forecast, 2019–2029
- South India Digital Lending Platform Market
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Solution
- By Service
- By Deployment
- By End User
- Market Size & Forecast, 2019–2029
- East India Digital Lending Platform Market
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Solution
- By Service
- By Deployment
- By End User
- Market Size & Forecast, 2019–2029
- West India Digital Lending Platform Market
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Solution
- By Service
- By Deployment
- By End User
- Market Size & Forecast, 2019–2029
- Competitive Landscape
- List of Key Players and Their Offerings
- India Digital Lending Platform Company Market Share Analysis, 2022
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
- Impact of Covid-19 on India Digital Lending Platform Market
- Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
- Ellie Mae, Inc.
- FIS
- Fiserv, Inc.
- Newgen Software
- Nucleus Software
- Pegasystems Inc.
- Roostify
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Country
- Assumptions & Limitations
- Qualitative Research
*Financial information of non-listed companies can be provided as per availability.
**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.
List of Figures
Figure 1 India Digital Lending Platform Segmentation
Figure 2 India Digital Lending Platform Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2022
Figure 4 India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Figure 5 India Digital Lending Platform Market Share, By Solution, By Value, 2019–2029
Figure 6 India Digital Lending Platform Market Share, By Service, By Value, 2019–2029
Figure 7 India Digital Lending Platform Market Share, By Deployment, By Value, 2019–2029
Figure 8 India Digital Lending Platform Market Share, By End User, By Value, 2019–2029
Figure 9 North India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Figure 10 North India Digital Lending Platform Market Share, By Solution, By Value, 2019–2029
Figure 11 North India Digital Lending Platform Market Share, By Service, By Value, 2019–2029
Figure 12 North India Digital Lending Platform Market Share, By Deployment, By Value, 2019–2029
Figure 13 North India Digital Lending Platform Market Share, By End User, By Value, 2019–2029
Figure 14 South India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Figure 15 South India Digital Lending Platform Market Share, By Solution, By Value, 2019–2029
Figure 16 South India Digital Lending Platform Market Share, By Service, By Value, 2019–2029
Figure 17 South India Digital Lending Platform Market Share, By Deployment, By Value, 2019–2029
Figure 18 South India Digital Lending Platform Market Share, By End User, By Value, 2019–2029
Figure 19 East India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Figure 20 East India Digital Lending Platform Market Share, By Solution, By Value, 2019–2029
Figure 21 East India Digital Lending Platform Market Share, By Service, By Value, 2019–2029
Figure 22 East India Digital Lending Platform Market Share, By Deployment, By Value, 2019–2029
Figure 23 East India Digital Lending Platform Market Share, By End User, By Value, 2019–2029
Figure 24 West India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Figure 25 West India Digital Lending Platform Market Share, By Solution, By Value, 2019–2029
Figure 26 West India Digital Lending Platform Market Share, By Service, By Value, 2019–2029
Figure 27 West India Digital Lending Platform Market Share, By Deployment, By Value, 2019–2029
Figure 28 West India Digital Lending Platform Market Share, By End User, By Value, 2019–2029
List of Tables
Table 1 India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Table 2 India Digital Lending Platform Market Size, By Solution, By Value, 2019–2029
Table 3 India Digital Lending Platform Market Size, By Service, By Value, 2019–2029
Table 4 India Digital Lending Platform Market Size, By Deployment, By Value, 2019–2029
Table 5 India Digital Lending Platform Market Size, By End User, By Value, 2019–2029
Table 6 North India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Table 7 North India Digital Lending Platform Market Size, By Solution, By Value, 2019–2029
Table 8 North India Digital Lending Platform Market Size, By Service, By Value, 2019–2029
Table 9 North India Digital Lending Platform Market Size, By Deployment, By Value, 2019–2029
Table 10 North India Digital Lending Platform Market Size, By End User, By Value, 2019–2029
Table 11 South India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Table 12 South India Digital Lending Platform Market Size, By Solution, By Value, 2019–2029
Table 13 South India Digital Lending Platform Market Size, By Service, By Value, 2019–2029
Table 14 South India Digital Lending Platform Market Size, By Deployment, By Value, 2019–2029
Table 15 South India Digital Lending Platform Market Size, By End User, By Value, 2019–2029
Table 16 East India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Table 17 East India Digital Lending Platform Market Size, By Solution, By Value, 2019–2029
Table 18 East India Digital Lending Platform Market Size, By Service, By Value, 2019–2029
Table 19 East India Digital Lending Platform Market Size, By Deployment, By Value, 2019–2029
Table 20 East India Digital Lending Platform Market Size, By End User, By Value, 2019–2029
Table 21 West India Digital Lending Platform Market Size, By Value (USD Million), 2019–2029
Table 22 West India Digital Lending Platform Market Size, By Solution, By Value, 2019–2029
Table 23 West India Digital Lending Platform Market Size, By Service, By Value, 2019–2029
Table 24 West India Digital Lending Platform Market Size, By Deployment, By Value, 2019–2029
Table 25 West India Digital Lending Platform Market Size, By End User, By Value, 2019–2029
Table 26 Ellie Mae, Inc. Company Overview
Table 27 Ellie Mae, Inc. Financial Overview
Table 28 FIS Company Overview
Table 29 FIS Financial Overview
Table 30 Fiserv, Inc. Company Overview
Table 31 Fiserv, Inc. Financial Overview
Table 32 Newgen Software Company Overview
Table 33 Newgen Software Financial Overview
Table 34 Nucleus Software Company Overview
Table 35 Nucleus Software Financial Overview
Table 36 Pegasystems Inc. Company Overview
Table 37 Pegasystems Inc. Financial Overview
Table 38 Roostify Company Overview
Table 39 Roostify Financial Overview
Market Segmentation
To request a free sample copy of this report, please complete the form below.
We value your investment and offer free customization with every report to fulfil your exact research needs.
Frequently Asked Questions (FAQs):
2. What is the expected growth rate of India Digital Lending Platform Market during forecast period?
7. Which service segment holds the leadership position in the India Digital Lending Platform Market?
RELATED REPORTS
WHY CHOOSE US
-
24/7 Research Support
Get your queries resolved from an industry expert. Request for a free product review before report purchase.
-
Custom Research Service
Ask the Analyst to customize an exclusive study to serve your research needs
-
Quality & Accuracy
Ask the Analyst to customize an exclusive study to serve your research needs
-
Data Visualization
As the business world is changing dynamically every day. We need to stay pin point in relation to data management and optimum data utilization
-
Information security
We never share your personal and confidential information. Your personal information is safe and secure with us.