First, consumer behaviors are changing dramatically, shaped by experiences offered by internet giants. Second, there have been some rapid technological advances, led by the ever-increasing penetration of smartphones as well as the proliferation of data. Third, the regulatory environment is increasingly becoming favorable, with laws increasingly providing an impetus to the digital lending market. Finally, there have been some remarkable innovations in the operating models of lenders. These factors have played out similarly in India as well, resulting in an exponentially growing market.<\/p>\n
Primary consumer research brings several interesting insights to the fore and validates India\u2019s readiness to adopt digital lending. Almost 50 per cent of loan seekers with internet access actually purchased digitally over the last 12 months. Consumers are \u2018digitally ready\u2019 across different product types. Digital behaviours are also not bound by demographic factors; the old, for instance, demonstrate very similar behaviours as the young; digital behaviors are similar across genders as well as city tiers. Consumer journeys, however, are \u2018phygital\u2019 or hybrid; neither purely digital nor only physical. Search engines and lender sites are the most important sources of research; consumers typically look for prices and eligibility. Interestingly, digital loan ticket sizes are comparable to those of physical loans.<\/p>\n
Digital lending presents a large opportunity in the Indian context. It is estimated that the total retail loans that could be disbursed digitally in the next 5 years could be over $1 trillion. Annual digital disbursements 5 years hence would be nearly 5X that of current levels.<\/p>\n","protected":false},"excerpt":{"rendered":"
A $1 trillion opportunity over the next 5 years<\/em><\/p>\n Around the World, lending models in the last few years have seen frenetic activity. Initially, the juggernaut was led by fintechs, but a few traditional lenders have followed suit. There are a few fundamental drivers that are all coming together to turbocharge this space.<\/p>\n","protected":false},"featured_media":53471,"template":"","meta":{"pmpro_default_level":"","tdm_status":"","tdm_grid_status":""},"product_brand":[],"product_cat":[2355,2347],"product_tag":[3475,2260],"class_list":["post-75788","product","type-product","status-publish","has-post-thumbnail","product_cat-digital-banking-en","product_cat-study-library","product_tag-2016-2020","product_tag-bcg","pmpro-has-access","first","instock","shipping-taxable","product-type-external"],"yoast_head":"\n