All you need to know about LendTech

By Puja Sharma

According to the report by researchandmarkets, the global LendTech market will grow at a rate of over 24% during the forecast period 2019–2025. LendTech is a loan point of sale platform ideally providing consumer-centric services. The services include ‘Buying Now, Pay Later (BNPL) personal loan, gold loan, salary loan, education loan, auto loan, and P2P lending. The business-centric services include fixed-term finance, corporate card, as well as trade finance. The services in the segment include a collection of management, alternate credit scoring, lending as services, loan management system (LMS), and loan origination system.

The market for LendTech is predominantly driven by the increasing penetration of the Internet and the rapid adoption of technology by all levels of lending service providers. Increasing adoption of cloud services and automation in the lending process is resulting in reduced cost, rapid implementation, and ease of lending processes.

According to the LendTech market analysis, North America accounted for the largest share of the global LendTech market in 2018. With the presence of the highest number of technology innovators and increasing adoption of lending technology by the lending corporations to enhance customers’ buying experience, this region is expected to dominate the market during the forecast period.

The Asia Pacific region is expected to witness the fastest growth rate during the forecast period due to the rising adoption of LendTech solutions for reforming the lending landscape and the growing number of start-ups catering to most of the financial areas, including banking, insurance, lending, and wealth management.

Emerging LendTech in the sector

Google Pay, M-Swipe, Razor Pay, ZestMoney, and LazyPay are emerging as leading lending platforms for consumers as well as merchants.

LazyPay – a Gurugram-based LendTech platform has to date raised to $7m in a funding round, as per reports.

M-swipe – M-swipe which develops point-of-sale terminals for merchants, in 2019 raised to $30m.

Razor Pay– After being crowned a Unicorn in October 2020, Razorpay, India’s leading Payments and Business Banking platform, April 2021 announced its Series E fundraise of $160m. This financing round has tripled the company’s valuation to $3 Billion in less than six months, signalling one of the fastest increases in valuation for an Indian Unicorn.

ZestMoney– a start-up that helps consumers with no credit history get loans to buy online, in April 2019 raised a $20 million Series B.

The outlook

The APAC region such as India, China, Japan, and South Korea are among the leaders in adopting digitalization, therefore is anticipated to grow at a higher rate in the LendTech market.  The increasing number of start-ups in these regions provide cutting-edge services to the banking, insurance, and wealth management sectors. consumers are rapidly adopting the emerging technologies paving a way for LenTech platforms.