MARKET NEWS

Loan software can provide you with small loan services through the computer or mobile phone, generally has the advantages of low threshold, convenient application, fast review, fast loan, high limit.  Loan software can generally be divided into cloud-based software and on-premise software.  

Cloud-based software provides more flexible and optimized processes and it is hosted on a vendor\'s server and accessed via a web browser;  On-premise software is installed on the company\'s own computers and servers.  Data show that in 2020, the revenue of cloud-based loan software and on-premise loan software segments was $960.29 and $417.46 million respectively, accounting for 69.70% and 30.30% of the market share respectively.  

From the perspective of application fields, there are commercial banks, shadow banks and investment banks. Commercial banks are where most people do their banking. Commercial banks make money and earn interest on loans such as mortgages, car loans, business loans and personal loans, and customer deposits provide the funds to make these loans.  Shadow banking refers to bank-like activities carried out by non-bank financial companies that are not strictly regulated.  However, these institutions act as intermediaries between investors and borrowers, providing credit and generating liquidity in the system.  Although these entities do not accept traditional demand deposits offered by banks, they do offer services similar to those offered by commercial banks.  An investment bank is a special type of financial institution designed to help companies access the capital markets to raise funds and address other business needs.  Research shows that commercial banks have the largest loan software market, accounting for 43.06% of the global market share in 2020, while shadow banking and investment banking account for 19.31% and 26.21% respectively.

Research shows that Europe is the largest revenue market of the global bank loan software industry. In 2020, the revenue of the European bank loan software market was $530.00 million, accounting for 38.47% of the 

global market share.  North American bank loan software market with $473.29 million of market revenue, accounting for 34.35% of the global market, ranked the second;  The Asia-Pacific market followed with a market revenue of $310.51 million, accounting for 22.54% of the global share;  However, the market of bank loan software in South America and Central and East Africa is small, accounting for only 2.21% and 2.44% respectively in 2020.  

Data show that the market revenue of the global bank loan software industry was $818.83 million in 2015. Since then, the market has developed stably and the market revenue has increased year by year. In 2017, it has exceeded 1000 million dollars, and in 2020, it reached $1377.75 million, with a year-on-year growth of 8.19%.  The compound annual growth rate (CAGR) of market revenue from 2015 to 2020 was 10.97%.  With the increasing shift from traditional to digital lending, more and more governments going digital, and the changing needs of bank customers, the global bank lending software market will continue to grow well and is expected to reach $2,787.12 million in revenue by 2026.

The increasing customer demand for efficiency in loan operations is a big reason for the growth of the bank loan software market.  Early lending operations were performed manually with minimal technical support and were complex and time-consuming.  To make the process more efficient, banks have adopted digital technology solutions, such as loan software.  Such solutions help simplify processes and save time, which will lead to market growth.  Cloud-based loan software can be easily configured in a short period of time, reducing overall processing time and addressing issues such as paperwork.  In addition, documents are stored on a central server and managed using a cloud-based system, making it easier to share, update, and find the information you need.  As a result, the adoption of cloud-based loan software is expected to increase and become a major growth area for the market.  

On the other hand, loan software can help banks provide accurate real-time data analysis related to pricing and review the credit profile of potential customers.  In addition, loan software can help banks manage various types of notes, installment loans, mortgages and contracts as well as automate loan decisions and play an important role in improving service speed and borrower satisfaction.  These factors are expected to drive the growth of the global bank lending software market in the next few years.  In addition, increased partnerships and acquisitions between multinational corporations and banking organizations are expected to contribute to market growth;  The rapid development of artificial intelligence, blockchain, big data, mobility and other technologies, as well as the continued growth of cloud-based digital lending technology and the technological development of digital lending platforms are also expected to bring opportunities to the global bank loan software market.  

However, bank lending software is highly professional, which places high demands on the development, implementation and maintenance teams of bank IT solution providers.  A software developer should not only be proficient in software development techniques, but also be very familiar with banking business processes.  At present, such compound talents are relatively scarce, which may restrict the development of the industry.  On the other hand, as the core of the financial industry, banking industry\'s information security and system services are related to the rights and interests of citizens, legal persons and organizations, social order and public interests, as well as national financial security and social stability.  The state has extremely high requirements on the security of financial products and financial transactions. Unqualified software products may affect the account security and the healthy development of the industry.  In addition, the industry is facing fierce competition, and the increase of players in the industry will pose a threat to the market share of the existing players.