- Digital Lending involves lending through web platforms or mobile apps, utilizing technology for authentication and credit evaluation.
- History reveals that lending has been a transaction in which the lender gives money to the borrower in exchange for a return (interest) on the money.
- There are a variety of complex lending and financing instruments and lending is always centred on one thing which is the ability to get the money back.
- Rapid advancements in cloud computing, artificial intelligence, and blockchain, as well as faster and more affordable internet connectivity, have fuelled the rise of FinTech start-ups, and lending has also transformed and become “digital.”
- Through the power of machine learning, financial institutions are now able to make quicker and more accurate decisions by shifting from an analysis of individuals to an analysis of patterns and trends.
- The global market for digital lending platforms is anticipated to reach $20 billion by 2026, representing a compound annual growth rate of 19.6 per cent over the previous seven years.
- The finance industry has been alerted by Covid-19 to the tremendous potential of digital transformation.
- Customers’ demand for contactless transactions is on the rise which has made lenders adopt technology to provide borrowers with maximum convenience.
- Even traditional banks and non-banking financial companies (NBFCs) are realizing the need to digitize processes such as customer onboarding, risk assessment, loan underwriting, disbursement, and repayment in order to reduce operational costs and enhance the customer experience.
No need to say that today is the order of Digital Learning and Digital Lending.