Increasing Growth in Digitalization and High Penetration of Internet Services Drives the Growth of the Africa Digital Lending Platform Market

Since 2009 there has been a transformation of financial institutions towards digitalization by integrating digital technologies and becoming FinTech. Digital transformation has provided with automation, better services and efficiency to financial processes. Internet services have been a major factor for the transformation of these financial institutions. With people getting more accustomed to internet services for their basic usage, financial services have taken advantages of these factors. Companies are developing digital platforms for their financial services such as digital lending platform, these platforms would be ineffective without the increasing adoption of internet. Increasing penetration of internet services will boost the Africa digital lending platform market.

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Data Bridge Market Research analyses that the Africa Digital Lending Platform Market is expected to reach USD 1,792,362.06 thousand by 2031 from 459,465.75 thousand in 2023 growing with a CAGR of 18.7% in the forecast period of 2024 to 2031.

Key Findings of the Study

Increase in Smartphones for Financial Services

Smartphones have simply revolutionized the financial services market by bringing in technology such as Near-Field Communication (NFC) payments, Quick Response (QR) code payments, Internet payments, direct carrier billing and mobile banking. With the implementation of online banking into smartphones, financial services have found the need to develop digital platforms which can be used through smartphones as the there is a high usage of smartphones among the people of Africa. This increasing adoption of smartphones among the people is thus creating huge growth for the Africa digital lending platform market.

Report Scope and Market Segmentation

Segment Analysis

Africa digital lending platform market is segmented into seven notable segments which are based on the component, deployment model, loan amount size, subscription type, loan type, type, and vertical.

• On the basis of component, the Africa digital lending platform market is segmented into solutions and services

In 2024, the solutions segment is dominating the Africa Digital Lending Platform Market

In 2024, the solutions segment is dominating the market with a market share of 77.69% due to the widespread adoption of mobile technology and internet access, which facilitate the provision of digital lending services.

• On the basis of deployment model, the Africa digital lending platform market is segmented into on premises and cloud

In 2024, the on premises segment is dominating Africa Digital Lending Platform Market

In 2024, on premises segment is expected to dominate the market with a market share of 62.46% because many financial institutions and digital lenders prefer on-premises solutions for greater control over their data security and privacy, which is critical given the sensitive nature of financial information.

• On the basis of loan amount size, the Africa digital lending platform market is segmented less than USD 7,000, USD 7,001 to USD 20,000, and more than USD 20,001. In 2024, less than USD 7,000 segment is expected to dominate the market with a market share of 43.15%
• On the basis of subscription type, the Africa digital lending platform market is segmented into free and paid. In 2024, free segment is expected to dominate the market with a market share of 60.61%
• On the basis of loan type, the Africa digital lending platform market is segmented into automotive loan, SME finance loan, personal loan, home loan, consumer durable, and others. In 2024, automotive loan segment is expected to dominate the market with a market share of 33.10%
• On basis of type, the market is segmented into business and consumer. In 2024, business segment is expected to dominate the Africa digital lending platform market with a market share of 64.69%
• On the basis of vertical, the Africa digital lending platform market is segmented into banking, financial services, insurance companies, P2P (Peer-to-Peer) lenders, credit unions, saving and loan associations, and mortgage. In 2024, banking segment is expected to dominate the market with a market share of 32.03%

Major Players

Data Bridge Market Research analyzes Branch International Financial Servid (U.S.), Tala (U.S.), OPay Digital Services Limited (Nigeria), Carbon (Nigeria), FairMoney (Nigeria), Aella (Nigeria), FINT Technology Africa, Ltd (Nigeria), Lendable (London), Palmcredit (Nigeria), Renmoney Microfinance Bank Limite (Nigeria), JUMO (Africa), PesaZone (Africa), Backbase (Netherlands), Fawry Banking and Payment Techno (Egypt), Kashway (Kenya), XCreditplus (Kenya), Okash (Kenya)  as the major companies operating in the Africa digital lending platform market.

Market Development

• In December 2023, M-KOPA expands to Ghana, unlocking USD 10 million in digital credit. Enhanced market presence fosters financial and digital inclusion, bolstering growth and customer impact across West Africa
• In July 2023, M-KOPA appoints Babajide Duroshola to lead Nigeria expansion. His experience in successful market entry and asset-financing aligns with M-KOPA’s strategy for growth in Africa’s largest economy
• In March 2022, Branch International has acquired a majority stake in Kenya's Century Microfinance Bank, enabling its foray into the microfinance banking sector. This strategic move expands Branch International's capabilities to offer deposit-taking services alongside digital lending, bolstering its support for individuals and SMEs. Leveraging Kenya's robust mobile technology landscape, Branch International aims to enhance financial inclusivity and accessibility across the region
• In April 2024, Tala's partnership with Maya Bank, which has extended a loan capital of P2.75 billion, enhances its micro-loans program in the Philippines. This collaboration significantly boosts Tala's Digital Lending Platform by expanding its capacity to offer micro loans to Filipinos through advanced digital and mobile technologies. It not only broadens financial access but also fosters economic empowerment, solidifying Tala's position as a trusted financial partner in the Philippines. This initiative underscores Tala's commitment to serving the underbanked population and advancing financial inclusion
• In May 2024, Tala has once again been honored for its impactful presence in fintech, securing places on Forbes' Fintech 50 list for eight consecutive years and CNBC's Disruptor 50 list for five consecutive years. This recognition underscores Tala's leadership in delivering personalized financial services globally, bolstering its reputation and reach. It highlights Tala's ongoing innovation in enhancing its digital lending platform, thereby improving accessibility and efficiency in financial services for underserved populations worldwide

Regional Analysis

Geographically, the countries covered in the Africa digital lending platform market report is South Africa, Nigeria, Kenya, Egypt, Uganda, Tanzania, Ethiopia, Democratic Republic of Congo, Sudan, and rest of Africa.

As per Data Bridge Market Research analysis:

South Africa is expected to dominate and be the fastest growing country in Africa Digital Lending Platform Market

South Africa is expected to dominate the market due to its advanced financial infrastructure, high mobile penetration, and well-developed regulatory environment. The country's robust banking sector and tech-savvy population create a fertile ground for digital lending platforms to thrive. In addition, favorable regulations and a supportive government framework for fintech startups have established South Africa as a hub for digital lending innovations, attracting both local and international players to the market.

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