Factors Influencing the Adoption of Digital Lending: A Comprehensive Literature Review

Abstract

Introduction:Digital lending refers to the process of providing loans or credit to individuals and organisations through online platforms, leveraging technical breakthroughs and digital networks. The increase in the method's popularity can be ascribed to its inherent benefits in terms of simplicity, efficiency, and accessibility in comparison to traditional lending practises.

Objectives of the study:The primary aim of this study is to perform an exhaustive review of the academic literature concerning the factors that impact consumer acceptance or usage of digital lending services. The research will concentrate primarily on individuals, with less emphasis on financial institutions or small businesses.

Methodology:This systematic literature review (SLR) on digital lending adoption or acceptance uses multiple academic databases. A comprehensive examination was performed on ten scholarly works from different countries and theoretical views. Select materials were screened using several inclusion criteria. Databases with scholarly publications maintain strict standards and high-quality academic research. This paper is projected to be novel using the above criterion. The paper examines how financial technology experts' theoretical viewpoints are shaped.

Findings:Scholars widely use theoretical frameworks like the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT). Previous study has identified trust, financial knowledge, and safety as key factors in digital lending uptake. The results of this study also imply that future research should give a real conceptual framework for studying financial technology adoption. As financial technology (fintech) advances and client behaviour changes, this is necessary.