IDC FutureScape: Worldwide Digital Lending 2024 Predictions

IDC FutureScape Figure

• Figure: IDC FutureScape: Worldwide Digital Lending 2024 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

• Summary of External Drivers

• Predictions: Impact on Technology Buyers

• Prediction 1: By 2026, 75% of Financial Institution Lenders Will Add Lending Staff Resources Dedicated to Ensuring Compliance with New Regulations for Explainable AI in Credit Decisions

• Associated Drivers

• IT Impact

• Guidance

• Prediction 2: By 2025, 33% of Financial Institutions Will Integrate Enterprise Intelligence in Their Lending Operations That Will Reduce Credit Decisioning Time by 50%

• Associated Drivers

• IT Impact

• Guidance

• Prediction 3: By 2026, 25% of Financial Institution/Fintech Lenders Will Use GenAI to Ensure Lending Regulatory Compliance to Avoid Fines and Penalties

• Associated Drivers

• IT Impact

• Guidance

• Prediction 4: By 2026, Increases in Identity Fraud Will Motivate 25% of Banks to Use AI in ID Fraud Detection in Lending

• Associated Drivers

• IT Impact

• Guidance

• Prediction 5: By 2025, 30% of Retail Bank Lenders Will Have Moved to an AI-Powered Approach for Collections, Enabling Response to a Customer's Individual Requirements and Providing Interaction via Any Preferred Channel

• Associated Drivers

• IT Impact

• Guidance

• Prediction 6: By 2027, 20% of B2B Payments Supporting Supply Chains Will Be Executed in Real Time

• Associated Drivers

• IT Impact

• Guidance

• Prediction 7: By 2026, 50% of Financial Institutions Will Rely on Blockchain/DLT to Verify Account and Identity Veracity, in Regard to AML and/or QIB, Accredited Investor, and so Forth

• Associated Driver

• IT Impact

• Guidance

• Prediction 8: By 2025, 35% of SMBs in Need of Working Capital Will Opt for Embedded Lending Options, Such as B2B BNPL, Over Traditional Financial Institutions When Securing Needed Funds

• Associated Drivers

• IT Impact

• Guidance

• Prediction 9: By 2027, 35% of SMBs Will Be Financed Through Industry Ecosystem–Powered Supply Chain Finance Platforms

• Associated Drivers

• IT Impact

• Guidance

• Prediction 10: By 2026, 40% of SMBs Will Explore and Adopt Invoice Financing Services to Free up Cashflow and Speed up the Working Capital Cycle, Enabled by Alternative Data for Credit Decisioning and Underwriting

• Associated Drivers

• IT Impact

• Guidance

Advice for Technology Buyers

External Drivers: Detail

• AI Everywhere — Generative AI Takes the Spotlight

• The Drive to Automate — Maximizing Efficiency and New Opportunities

• Global Supply Chain Resiliency — Push for Diversification

• Cybersecurity and Risk — Building Resilience Against Multiplying Threats

• The Digital Business Imperative — Competitiveness and Outcomes

• Everything as a Service Intensifies — Transforming Models to Drive Change

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• Related Research