DIGITAL LENDING MARKET ANALYSIS

Fraud is a major issue as lenders work to verify identities and incomes online without in-person interactions. Data privacy and security are also of high concern, as personal consumer financial information must be protected from theft or misuse. Regulations can struggle to keep up with rapidly evolving lending technologies, creating ambiguity that hampers innovation. Additionally, gaining consumer trust in automated and algorithm-driven lending processes takes time as many customers still prefer human interactions when it comes to obtaining loans.

Market Opportunity: Technological Advancement in Digital lending

As technology makes the lending process simpler, quicker and more convenient for borrowers, there has been rising demand for digital lending. Removal of physical branches allows for streamlined operations and lower overhead costs. Data analytics further expand access to credit by helping lenders better evaluate risk for more customer groups.