FinTech Lending Market Size, Share & Analysis | Trends - 2030 (2024)

FinTech Lending Market Outlook – 2030

The global FinTech lending market size was valued at $449.89 billion in 2020 and is projected to reach $4,957.16 billion by 2030, growing at a CAGR of 27.4% from 2021 to 2030. FinTech lender engages in using online technology to provide finance to businesses and individuals. Loans provided by these lenders are generally unsecured and take a personal guarantee from the borrowers. Moreover, it offers short-term loans with a quick turnaround from application to approval of loan amount. Furthermore, the FinTech lending process begins with online application with user registration, online documentation submission, customer authentication & verification, loan approval, loan disbursem*nt, and loan recovery.

It allows borrowers to easily apply for loans and offers them transparency, which, in turn, leads to significant time savings. This automated nature of FinTech lending offers a more precise approach by delivering funding solutions, thus reducing stress and increasing chances of successful loan approval. However, rise in need for digital financing among individuals has led to increase in number of sophisticated cyberthreats where phishing scams, fraudulent behaviors, and malwares are improvising with increasing number of attempts. This is thereby becoming one of the major factors hampering the FinTech lending market growth.

On the contrary, implementation of cloud-based lending solutions enables FinTech firms to integrate supplementary infrastructure technologies with each other to create robust and highly secure platforms. This rising trend of cloud-based services is projected to provide lucrative opportunities for the FinTech lending market in the upcoming years.

The report focuses on growth prospects, restraints, and trends of the FinTech lending market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the FinTech lending market outlook.

Segment Overview

The FinTech lending market is segmented on the basis of offering, business model, enterprise size, lending channel, and region. By offering, it is bifurcated into business lending and consumer lending. The consumer lending is further segregated into unsecured lending and secured lending. Based on business model, the market is divided into balance sheet lenders and marketplace lenders. Based on enterprise size, it is classified into large enterprises and small & medium-sized enterprises (SMEs). Lending channel covered in the market include online and offline. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Competitive Analysis

The FinTech lending market analysis includes top companies operating in the market such as Avant LLC, Braviant Holdings, Fundbox, Funding Circle, Kabbage Funding, LendingClub Bank, OnDeck, RateSetter, Social Finance Inc., and Tavant. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.

COVID-19 Impact Analysis

The COVID-19 pandemic has a moderate impact on the FinTech lending industry. FinTech firms across the globe are majorly focusing on digitizing their financial assets as well as lending schemes, which is helping them to capture large customer base even in the lockdown. In addition, various governments across the globe have restricted banks and lenders to change their debt reconstruction policy, which is negatively impacting the growth of the FinTech lending market.

Top Impacting Factors

Shift From Traditional Lending to Digital Lending

With increase in penetration of smartphones and rise in number of internet users across the globe, online financing has witnessed significant growth in the recent years. Digital lending is considered as one of the convenient and widely used option for lenders, as it provides instant affordability for applications. Multiple businesses and individuals have started filling applications online for taking loans in the recent years rather than getting into the time-consuming lending process.

According to the Federal Reserve, about 49% of small businesses applied for loan across the globe from various nonbanking and banking institutions. The ease of applying FinTech loans for borrowers and numerous other benefits for lenders, such as automated loan management, and rapid approval are shifting their attention toward digital lending, thus driving the market growth.

Increase in Security & Compliance Issues

Financial organizations across the globe are seeking to ensure secure transactions and to facilitate compliance. This has led to introduction of multiple stringent rules such as Know Your Customer (KYC) and newrules for tax reporting under the Foreign Account Tax Compliance Act (FATCA). These regulations have increased the compliance burden of banks, asset management companies, brokers, and insurers. Rise in implementation of new rules has increased the need for transparency of banks and financial regulators with customers or industry verticals about the trade-off between convenience and security when it comes to FinTech lending functions.

Technological Innovations in FinTech Lending

FinTech lending has experienced a drastic change over centuries, owing to the emergence of disruptive technologies. FinTech lending has revolutionized businesses in the recent years and helped banks and other lenders to streamline processes and improve the quality of their services. These innovations are constantly being developed, which are expected to offer numerous opportunities for the sector.

For instance, AI in FinTech lending solutions possesses extreme capabilities to reduce loan-processing time and operational costs. In addition, cognitive computing exhibits capabilities to analyze massive volume of data to create opportunities for lenders in risk analysis and management. Thus, all these factors collectively are expected to create significant opportunities for the expansion of the global FinTech lending market during the forecast period.

Key Benefits For Stakeholders

• The study provides in-depth analysis of the global FinTech lending market share along with current trends and future estimations to illustrate the imminent investment pockets.
• Information about key drivers, restrains, and opportunities and their impact analysis on the global FinTech lending market size are provided in the report.
• Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the FinTech lending market.
• An extensive analysis of the key segments of the industry helps to understand the FinTech lending market trends.
• The quantitative analysis of the global FinTech lending market forecast from 2021 to 2030 is provided to determine the market potential.

  FinTech Lending Market Report Highlights