Allied Market Research

2024

Loan Compliance Management Software Market

Loan Compliance Management Software Market Size, Share, Competitive Landscape and Trend Analysis Report by Component (Software, Service), by Deployment Model (On-Premise, Cloud), by Enterprise Size (Large Enterprise, Small and Medium Enterprises (SMEs)) and by Application (Portfolio Management, Risk Compliance Management, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: | Vineet Kumar
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Loan Compliance Management Software Market Outlook – 2027 

The global demand for loan compliance management software is increasing and is expected to grow as banks and lending institutions are adopting advanced technologies such as machine learning and internet of things (IoT) to enhance performance, risk reduction and reduce workloads. Loan compliance defines various legal steps which should be implemented on the borrowers, to ensure that the individuals, corporations or agencies respect their loans process and make a serious effort to recoup the loans they owed. 

Loan compliance management software allows administrators, corporate lenders and finance departments to comply with commercial loan agreements. The software helps to quickly control several loans with different agreement packages, control each loan individually, or view all loans on one interface.

The global loan compliance management software market is segmented on the basis of component, deployment model, enterprise size, application, and region. Based on component, the loan compliance management software market is bifurcated into software and service. In terms of deployment model, the market is categorized into on-premise and cloud. 

On the basis of enterprise size, the market is divided into large enterprises, and small & medium enterprises (SMEs). In terms of application, the market segregated into portfolio management, risk & compliance management, and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global loan compliance management software industry include Turnkey Lender Inc., Finastra, Fiserv Inc., Ellie Mae Inc., LendingQB, FIS, Jack Henry & Associates, nCino, defi SOLUTIONS, and FLOIFY LLC. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global loan compliance management software market. 

Top Impacting Factors

Rising need of loan compliance management software by credit unions and banks to enhance operational efficiency, monitor and control risks and attain a competitive advantage drives the growth of the market. In addition, stringent government regulation for loan processing and surge in need to provide enhance customer experience by FinTech industry fuels the growth of the market. 

However, high cost associated with the software and lack of technical expertise hampers the growth of the market. Furthermore, surge in adoption of blockchain, machine learning and artificial intelligence technology in loan compliance management software is expected to provide lucrative opportunity for the market.  

Banks Adopt AI to Manage Compliance Risk

Although conventional lending structures have focused entirely on credit ratings, outdated procedures and tiresome paperwork, AI is now introducing a systemic change in the way retail borrowers are evaluated for new loans. The National Business Research Institute and Narrative Sciences of India have stated that about 32% of financial service provider companies now have started utilizing AI technology. 

One of the major issue financial institutions faces is evaluating a customer for loan approval without credit score, which could lead to credit loss to lender. AI has introduced approaches to these challenges through predictive analytics, digital footprints, complex algorithms and data sets. This technology lets lending institutions focus on a loan applicant's online identity to evaluate credit worthiness by analyzing online purchasing patterns, account statements of utilities and mobile bills, or even accounts on social media.

Growth in Demand For Loan Compliance Management Software

New modern compliance departments see an increased compliance function and need consistency in risk monitoring and management. Lending and loan servicing costs have risen related to legal compliance developed during the "great recession." As per the evidence, 63% of policymakers are planning to introduce technology solutions as a major priority for increasing global competition in the provision of loans. 

About 38% of middle-market businesses have broken a loan agreement in the last few years. To overcome such worst situation, banks and other financial institutions are also continually searching for the best ways to enhance operating efficiency, track and manage risk and gain a competitive advantage.

Key Benefits of the Report

  • This study presents the analytical depiction of the global loan compliance management software market forecast along with the current trends and future estimations to determine the imminent investment pockets.    
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global loan compliance management software market share.     
  • The current market is quantitatively analyzed to highlight the global loan compliance management software market growth scenario.     
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.    
  • The report provides a detailed loan compliance management software market analysis based on the present and future competitive intensity of the market. 

COVID-19 Scenario Analysis

  • COVID has created interruptions of business in all industries worldwide. Banks and financial institutions have been unwilling to accept new loans due to increased government restrictions and increasing NPAs.  
  • With rising unemployment, individuals were unable to repay loans, thereby banks are facing burden with rising bad loans. Lock-down and shut-down problems have forced banks and financial institutions to physically prevent themselves from collecting loans. 
  • As a result, several institutions have begun processing loan repayments via electronic platforms. The circumstances led to a higher than average use of the loan processing platforms.

Questions Answered in Loan Compliance Management Software Market Research Report    

  • Who are the leading market players active in the loan compliance management software market?
  • What would be the detailed impact of COVID-19 on the loan compliance management software market size?
  • How current loan compliance management software market trends would influence the industry in the next few years?
  • What are the driving factors, restraints, and opportunities in the loan compliance management software market?
  • What are the projections for the future that would help in taking further strategic steps?

Loan Compliance Management Software Market Report Highlights

Aspects Details
Loan Compliance Management Software Market By Component
By Component
  • Software
  • Service
Loan Compliance Management Software Market By Deployment Model
By Deployment Model
  • On-Premise
  • Cloud
Loan Compliance Management Software Market By Enterprise Size
By Enterprise Size
  • Large Enterprise
  • Small and Medium Enterprises (SMEs)
Loan Compliance Management Software Market By Application
By Application
  • Portfolio Management
  • Risk & Compliance Management
  • Others
Loan Compliance Management Software Market By Region
By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

nCino, Finastra, Jack Henry & Associates, LendingQB, Ellie Mae Inc., defi SOLUTIONS, Fiserv Inc., FLOIFY LLC, Turnkey Lender Inc., FIS

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Loan Compliance Management Software Market

Global Opportunity Analysis and Industry Forecast, 2023-2032