Digital Lending Market Size

Statistics for the 2023 & 2024 Digital Lending market size, created by Mordor Intelligence™ Industry Reports. Digital Lending size report includes a market forecast to 2029 and historical overview. Get a sample of this industry size analysis as a free report PDF download.

Market Size of Digital Lending Industry

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Digital Lending Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 453.32 Billion
Market Size (2029) USD 795.34 Billion
CAGR (2024 - 2029) 11.90 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Digital Lending Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Digital Lending Market Analysis

The Digital Lending Market size is estimated at USD 453.32 billion in 2024, and is expected to reach USD 795.34 billion by 2029, growing at a CAGR of 11.90% during the forecast period (2024-2029).

  • Due to the Covid-19 pandemic, SMEs across the globe faced challenges in raising funds during the crisis to keep their businesses operating.
  • Digital Lending is expected to find several opportunities for growth and adoption during the pandemic, especially among SMEs. According to EY Global Banking Outlook this year, 63% of SMEs still prefer traditional banks for their financial needs, whereas 56% use a banking and payments FinTech service due to increasing FinTech lenders.
  • The lending landscape has changed drastically over the years due to the rapid adoption of digitization in the BFSI industry. The traditional form of lending still prevails in many parts of the world. However, the benefits provided by digital solution providers are increasingly paving the way for adopting digital lending solutions and services across enterprises.
  • Another major factor driving the market's growth is the changing consumer expectations and behavior due to the several benefits of digitizing banking and financial services. The customers may range from diversified backgrounds and may require the loan for various purposes ranging from personal loans to SME finance and home loans, amongst many others. According to a survey by IDC commissioned by Razorpay, each SME spends 816 hours and Rs 32 lakh on banking on an average per year.
  • Further, the adoption of several technological advancements, such as the proliferation of smartphones, has led to an increase in the adoption of digital banking across several end-user verticals. Also, technologies like Artificial Intelligence, Machine Learning, and Cloud Computing benefit banks and fintech as they can process vast amounts of customer information. This data and information are then compared to obtain results about timely services/solutions that customers want, which has aided in developing customer relations.
  • Aire, Kabbage, and Kasisto are some of the most prominent financial sector startups that have fully invested in AI. For instance, Kabbage uses AI algorithms that assess all risks of lending money to a particular customer, allowing managers of the company to give loans in minimal time. The demand for personalization of their needs among consumers in the fintech and banking companies has further strengthened the demand for AI.

Digital Lending Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)