COVID-19 to make a Significant Impact on the Loan Origination Software and expect to have tremendous growth in the next two quarters of FY 2020

The global loan origination software market is an emerging market and is presumed to grow during the forecast period. The global loan origination software market was valued USD 3.7 billion in 2019 and is presumed to reach USD 8.1 billion by 2029, growing at a CAGR 13.2%. The growth is attributed to a surge in automation in BFSI sector to enhance the customer experience. Furthermore, the advent of new companies in BFSI and IT sectors is also one of the factors propelling the market growth.

Moreover, growing government initiatives in emerging economies to enhance SMEs and large enterprise lending further led to an increase in the adoption of the loan origination software market. However, growing cyber-attack and breaches hinder the market growth.

Key Highlights

• By Component, the Solution segment holds the higher CAGR and is presumed to grow during the forecast period. The growth is attributed to the growing adoption of advanced technology to enhance staff productivity.
• By deployment mode, the cloud segment holds the higher CAGR and is presumed to grow during the forecast period on account of a broad offering of a cloud computing environment that includes; lower costs, scalability, and legacy interaction and among others.
• By application, the bank holds a higher CAGR and is expected to grow during the forecast period. The growth is attributed to the advent of new companies in the banking and IT sectors that adopt advanced technologies to compete with leading companies.
• The growth of the loan origination software market is likely to increase amid coronavirus outbreak on account of government initiatives to provide loans to SMEs to sustain the business operations.
• North America holds a higher CAGR and is presumed to grow during the forecast period. The growth is attributed to the presence of a large number of leading vendors offering loan origination software market.
• Asia-Pacific is the fastest-growing market in the adoption of loan origination software market on account of the adoption of advanced technologies by financial institutions in emerging economies.

Market Segments

1. By Component
   1. Solution
   2. Services
2. By Deployment Mode
   1. Cloud
   2. On-Premise
3. By Loan Type
   1. Mortgage Loans
   2. Personal Loans
   3. Business Loans
   4. Auto Loans
   5. Student Loans
   6. Others
4. By Organization Size
   1. SMEs
   2. Large Enterprise
5. By Application
   1. Banks
   2. Credit Unions
   3. Mortgage Lenders
   4. Online Lenders
   5. Credit Agencies
   6. Others