AI Platform Lending Market Trends

Growth Drivers          

• Increasing Number of Banks Across the Globe to Reach More People in Every Region

• There’s a remarkable number of banks functioning in every nation, and since digitalization is at its peak, they all are adopting AI-based lending platforms. It helps the bank or any other lending institution understand the latest financial trends, demand, and existing data of customers and creates efficient and credible results for decision-making. Therefore, such a higher adoption is expected to hike the growth of the market over the forecast period.
• It is estimated that the United States had about 11,000 registered banks and credit unions in 2018.

• Growing Number of Credit Card Holders with Rising Disposable Income and Needs of People

• As of 2021, approximately 1.5 billion transactions were estimated to be completed via credit card in India.

• Rising Advancement in Cloud Computing and Increasing Adoption to Store Big Data and Operate Remote Servers

• Cloud computing helps many financial institutions by providing computing services such as security, operating servers, storing data, remote management, communication, and networking. There are about 3.5 billion people who use the cloud across the globe which accounts for about 50% of the world’s population and nearly 70% of Americans for storing data online or using web-based software applications as of 2022 updates.

• Higher Prevalence of Digitalization Worldwide with More Number of People Using Internet

• The huge adoption and integration of digital technology into all sectors and organizations has proliferated digital transformation throughout the world. For instance, in 2022, approximately 90% of businesses were projected to be involved in some sort of digital initiative, while 85% of business leaders admitted that digitalization is a priority across the globe.

• Increasing Banking Activities on Smartphones with Net Banking and Mobile Banking Applications

• It was noticed that about 3 billion people were using smartphones in 2019 worldwide.

Challenges

• Possibility of Cyber Attacks and Financial Damage
• Digitalization of banks is rising with the use of all services on a smartphone, computer, or any internet-connected device. The increasing digitalization increases the cyber threat, as these services can be easily hacked to get all the information from the web. The online web will provide all the information required by cybercriminals. There is a high chance of cyber threats in many cases, which hinders market growth during the forecast period.
• Higher Credibility for Traditional Lending Methods
• Issues Regarding Connectivity and Infrastructure Maintenance