From point-of-sale financing to credit scoring to payday alternatives, companies in these areas are going after traditional lenders.
Digital lending has gone mainstream.
Companies in the space are using technologies such as artificial intelligence (AI) to help organizations improve the borrowing experience, detect fraud, make better credit decisions, automate processes, and eliminate bias.
For example, Amount works with banks to streamline and automate lending processes. On the consumer side, Clearscore uses algorithms to provide free credit scores and suggest relevant financial products to users. Meanwhile, Zilch offers buy now, pay later (BNPL) services that allow consumers to pay for purchases in interest-free installments.
These solutions are rapidly gaining traction with consumers and investors — digital lending startups raised an all-time high of nearly $21B in 2021, a 90% increase year-over-year.
Using CB Insights data, we identified 140+ private companies operating in the digital lending space.
We define digital lending companies as those streamlining applications, building underwriting algorithms, providing capital, servicing debt, or developing underlying infrastructure.