United States Digital Lending Market Report and Forecast 2024-2032

United States Digital Lending Market Outlook

The United States digital lending market size is assessed to grow at a CAGR of 12.3% between 2024 and 2032. The market is being driven by the rising digital transformation in the financial sector in the United States.

Key Trends in the Market

Digital lending refers to services that are aimed at providing credit facilities and loans through online platforms and digital technologies. Such services also use technologies like data analytics to assess the creditworthiness of borrowers. Some benefits of digital lending include enhanced security, improved efficiency, and increased profitability of credit unions and banks.

• One of the key United States digital lending market trends includes the growing digital transformation in the financial sector in the country. Digital lending offers various benefits, including reduced operating costs, lowered loan processing costs, and enhanced compliance during the repayment period. This lending method also improves borrowers’ experiences by offering them the convenience of signing and reviewing documents remotely.

• The United States digital lending market growth is being fuelled by increasing investments in technologies by banks and financial institutions due to factors like evolving customer demands, economic uncertainty risk, and rising competitive threats. Hence, lenders are adopting digital lending solutions to enhance their flexibility, automate end-to-end operations, and surge their productivity and accuracy.

• Technological advancements and innovations, coupled with the increasing accessibility to the internet, are expected to positively impact the United States digital lending market demand in the coming years. Lenders are using technologies like artificial intelligence (AI) and machine learning (ML) to predict business outcomes and understand customer behaviours to make targeted decisions.

• Such technologies also predict credit scores for consumers, enable underserved consumers to create credit profiles, support lenders to make informed decisions, assess and monitor risk factors, and automate verification processes, among others.

Market Analysis

Based on offering, the market is segmented into solution and services. On the basis of deployment type, the United States digital lending market segmentation includes cloud based and on-premises.

By end user, the market is divided into banks, credit unions, and NBFCs, among others. The major regional markets for digital lending in the United States include New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, and Far West.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the United States digital lending market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Fiserv, Inc. 

• Oracle Corp. 

• ICE Mortgage Technology, Inc. 

• On Deck Capital, Inc. 

• VeriPark  

• LendingClub Corporation  

• Kiva Microfunds 

• Tavant

• LendingTree, LLC 

• Turnkey Lender Corporation  

• Others

Market Share by Deployment Type

Cloud-based digital lending platforms account for a considerable portion of the United States digital lending market share. Such platforms can efficiently automate the approval process, minimise operational expenses, generate error-free workflow, and decrease the requirement for manual labour. Cloud lending platforms also support lenders to easily roll out new product categories and rapidly deploy innovative modules.

Besides, cloud lending platforms offer end users the flexibility to comply with evolving regulatory changes and market fluctuations. Other benefits such as faster market reach, low maintenance, automated operations, and scalability are further driving the adoption of cloud-based digital lending solutions in the United States.

Market Share by End User

As per the United States digital lending market analysis, credit unions use digital lending platforms to minimise loan processing time and automate and streamline operations. Credit unions are also investing in digital transformation to improve lending experience and enhance customer service. Besides, the emergence of fintech startups is prompting credit unions to expand their digital lending portfolio, offer omnichannel lending experience, and reduce loan cycle times.

Meanwhile, the demand for digital lending services from NBFCs is significantly increasing amid high internet and smartphone penetration, coupled with an emerging shift from conventional lenders and technological advancements by fintech institutions.

Competitive Landscape

Fiserv, Inc. is a prominent technology company that offers various services to the financial sector. With its headquarters in Wisconsin, the United States, the company enables money movement for financial institutions as well as businesses. It also serves different sectors such as fintech, banks, small businesses, and credit unions, among others.

ICE Mortgage Technology, Inc., a part of Intercontinental Exchange (NYSE: ICE), is a company that is engaged in transforming, streamlining, and digitising the residential mortgage process in the United States. It has also established its position as a prominent cloud-based loan organisation platform provider for the mortgage sector.

On Deck Capital, Inc. is a part of Enova International, Inc. and is engaged in delivering small business loans in the United States. It was founded in 2006 and offers a business line of credit and a business term loan to support businesses to meet their unique funding needs and customise repayment terms. Since its establishment, the company has delivered loans of USD 15 billion to small businesses in the US.

Key Highlights of the Report

Other United States digital lending market players include Oracle Corp., VeriPark, LendingClub Corporation, Kiva Microfunds, Tavant, LendingTree, LLC, and Turnkey Lender Corporation, among others.