Digital lending has revitalized financial institutions, propelling industry growth. Projections anticipate the digital lending sector to reach a market capitalization of nearly 350 billion USD by the close of 2023, building on its 270 billion USD value in the Indian market in 2022, with a steady CAGR of 39.5%.
This upsurge stems from a robust platform facilitating seamless banking practices. Evolving from traditional paperwork, digital lending thrives on data-driven AI, ML technologies, and other essential components, establishing itself as a key beneficiary of technology-backed banking methodologies.
Apart, the Indian government and regulatory authorities have strongly supported the advancement of digital lending. Their efforts in shaping regulations and establishing a robust infrastructure have successfully maintained a secure balance between consumers and lenders. Key initiatives such as implementing UPI and linking with Aadhar showcase the Reserve Bank of India’s commitment to safeguarding the interests of all stakeholders. Presently, the RBI continues to demonstrate its endorsement of digital lending fintech business models by introducing progressive regulations like the Digital Lending Guidelines and Default Loss guarantees.
India’s fintech sector now has gained substantial traction, establishing the country as a prominent player in the Asian fintech landscape. Let us look into the dynamic fintech lending landscape, exploring the growth and transformation it has undergone with changing consumer behaviours.