Commercial Loan Software Market Size - By Product, By Deployment Mode, By Enterprise Size, By End Use, Analysis, Share, Growth Forecast, 2025 - 2034

Commercial Loan Software Market Size

The global commercial loan software market was valued at USD 7.6 billion in 2024 and is projected to grow at a CAGR of 9.7% between 2025 and 2034. The necessity of adhering to changing standard regulations is leading financial institutions to use more advanced and flexible software solutions. For instance, the formation of a strategic partnership in May 2024 between Finastra and Newgen Software, which sought to automate the entire lending workflow for mortgage lenders and brokers.
 

Benefits such as accelerated and enhanced precision in loan processing is expanding the demand of the industry. Moreover, new technologies such as AI and automation are making it possible to increase the speed and precision of risk evaluation and overall loan approval. For example, in 2023, the auto loan origination software market was estimated to be USD 692.4 million and is anticipated to grow at a CAGR of over 7.5% , during the period of 2024 to 2032.
 

Moreover, growing complexities of financial environments and economic changes is increasingly leading to the greater demand for credit risk management tools. It is increasingly apparent that lending involves a lot of risk which financial institutions would wish to measure, manage, and mitigate through advanced tools.
 

As an example, the credit risk rating software market was valued at USD 10.9 billion in 2023. It is estimated to grow at a CAGR of over 9% between 2024 and 2032. As the credit risk rating software market expands, the demand encountered by the commercial loan software segment will also increase which makes this market grow.
 

Commercial Loan Software Market Trends

• Greater attention is now being paid to crafting custom approaches to loan management for small and medium-sized enterprises (SMEs). These approaches simplify the application procedure, provide flexibility in the contracting of loans, and apply sophisticated analytics to facilitate financing and its management.
   
• Lumos Portfolio Score was launched by Wilmington-based Lumos Technologies in March 2024 and is specifically designed to facilitate the granting of loan applications from small businesses by financial institutions. This technology platform utilizes data analytical processes to provide useful insights that improve the decisions made by banks, credit unions, and other non-bank lenders with respect to small business loans.
   
• Financial institutions are increasingly updating their digital transformation strategies to better handle the management of the loan processes. This interstate is aimed at new processes such as the employment of specialized clouds, artificial intelligence, and machine learning towards an improvement of the overall productivity of activities.
   
• In June 2024, Abrigo launched the Abrigo Small Business Lending platform, designed to automate and enhance small business lending for financial institutions. The solution will help lenders to expand their portfolios while at the same time growing the community.
   
• With the shift towards streamlined user experiences through AI chatbots and automated loan disbursements, digital-first loan origination is increasing. Mobile applications combined with self-service portals improve borrower engagement and fulfill workflows more effectively.
   
• The market size of the digital lending platform alone surpassed 8.5 billion USD in 2022 and is projected to have 20.5% CAGR from 2023 to 2032. This emphasizes the surge in demand for commercial platforms which facilitates the expansion in the loan management software market.
   

Commercial Loan Software Market Analysis

Based on deployment, the commercial loan software market is divided into cloud-based, and on-premises. In 2024, the cloud-based segment dominated the market generating revenue of USD 5.1 billion and the cloud-based segment is expected to grow at CAGR of around 10% during the forecast period.
 

• To handle business loans, institutions have come to adopt cloud-based systems because of their flexibility and scalability. The platforms enable institutions to scale their operations at ease, reduce IT upkeep costs, and access real-time data anytime and anywhere.
   
• As an example, Together, a property lender in the UK, partnered with cloud banking specialist nCino in April 2024 to incorporate the Lending Cloud system into Together’s core operations with the aim of improving lending functions and increasing operational productivity. The aim of Together was to “future proof” their enterprise which was done by the implementation of nCino’s Cloud Banking Platform at Together, providing financial services to the customers and capturing the evolving market conditions.
   
• Furthermore, cloud solutions increase cooperation and integration by providing relevant tools and data access across departments and sites. Such advanced connectivity does not only enhance communication; it also improves workflows and processes enabling colleges and universities to respond instantly to market changes and customer needs.
   

Based on enterprise size, the commercial loan software market is segmented into SMEs, and large enterprises. In 2024, the large enterprise segment dominates the market with 60% of market share and is expected to grow at CAGR of over 9% from 2024 to 2032.
 

• Big companies are seeing the value of adopting automated platforms with integrated advanced analytics for managing loans. These sophisticated systems improve the processes for dealing with large and complicated loan contracts, enabling powerful insights to be harnessed from the available data while improving the overall decision making for the organization’s risk management activities.
   
• Amount Company secured USD 30 million in equity funding in July 2024. With this funding, they deepened their retail systems PC’s credit card issuance and bank’s lending digital solution servicing. Amount also improved its digital loan origination and decisioning platform aimed at enhancing the lending capabilities of the credit unions.
   

Based on end-use, the commercial loan software market is segmented into banks, credit unions, mortgage lenders and brokers, and others, with the bank category expected to dominate due to its extensive loan portfolios and regulatory requirements.
 

• As banks deal with commercial lending from SME loans to trade and corporate loans, software capable of automation and risk assessment is essential.
   
• As an example, FIS rolled out a new product, SMB Digital Lending, in June 2024 which enables banks to originate, underwrite, and fund loans for small- and medium-sized businesses (SMBs). The platform was built in conjunction with Lendio, one of the prominent providers of small business financial solutions technology.
   
• The emergence of digital banking and collaborations with fintech companies also accelerates the adoption of software by banks for improving the loan origination, underwriting, and the credit decision processes.
   

Based on product, the commercial loan software market is further divided into loan origination systems (LOS), loan servicing software, credit analysis and underwriting tool, and others, categories with the loan origination systems (LOS) expected to dominate owing to its critical role in automating and streamlining the loan approval process.
 

• LOS systems optimize value by automating the processes of borrower registration, document verification, underwriting and credit decisions. These systems are emphasized by Fintech institutions for their ability to minimize manual inaccuracies, enhance compliance, and expedite loan issuance.
   
• In June 2024, Truework implemented a new builder integration with the Empower Loan Origination System (LOS) from Dark Matter Technologies, which was meant to improve the mortgage lending workflow. This integration enables mortgage lenders to pre-assess the income and employment status of United States borrowers within Empower LOS, thus simplifying the verification process.
   

In 2024, the North America region dominated the commercial loan software market with around 36% market share and generates around USD 2.5 billion in revenue.
 

• The incorporation of AI into the loan servicing modules is garnering the attention of various financiers which is necessary in the region. The country is also emerging into a frontrunner due to the investment in the automatization of the autopilot fintech subdomain as well as the growing need for an automatized loan underwriting process.
   
• For instance, Levr.ai, acquired funding of USD 2.6 Million. The firm was awarded seed funding of USD 1 Million in February 2024. The company claims that the funding was used to further augment the company’s AI powered loan management system for SMEs in US and Canada.
   

The commercial loan software market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• The combination of digital transformation and Germany’s advanced banking system, in conjunction with the increasing demand for automated lending services, is propelling growth within the country’s commercial loan software market. Major banks and financial institutions are now leveraging AI and cloud computing to fundamentally change the sequencing of how their loans are managed.
   
• The UK, Germany, France, Italy, and Spain have launched a new campaign that fosters open banking standards and API integration. More and more banking institutions are adopting the use of systems that promote interoperability and seamless data exchange across multiple platforms.
   
• Polly disclosed in February 2024 that a new API integration with Byte Software is now live, enhancing the value of both platforms for mortgage lenders. With this integration, joint customers can now leverage the cloud-native Polly Product and Pricing Engine (PPE) along with the Byte Loan Origination System (LOS).
   

The commercial loan software market in China is expected to experience significant and promising growth from 2025 to 2034.
 

• In China, the adoption of artificial intelligence solutions for the management of loans is steadily increasing in most major banks and other financial institutions because of the improved efficiency and assessment of risk. For example, in November of 2024 China published an extensive action plan to boost the digitalization of the financial sector with a goal of having a highly adaptive system by the end of 2027.
   
• The development of mobile-oriented solutions for commercial loan servicing is now becoming increasingly prevalent in Asia Pacific. Financial institutions are now more focused on developing mobile applications due to the rise in smartphone usage and customer interactions.
   
• For instance, in June 2024, Salesforce said it would launch its ‘Digital Lending for India’ platform focused at improving the loan origination functions for banks and lenders in India. This initiative seeks to solve the specific problems of the Indian lending landscape through India's strong digital public infrastructure.
   

The commercial loan software market in Saudi Arabia is expected to experience significant and promising growth from 2025 to 2034.
 

• The Saudi Arabia commercial loan software market is affected by the banking sector’s digitization, SME financing growth, and the compliance measures needed to be fulfilled. There is also a government promotion of innovation through schemes like Vision 2030 which helps increase software consumption in the country.
   
• For instance, in August 2023, Qarar teamed up with Biz2X to develop what has been hailed as the ‘first cloud-based SME lending platform in Saudi Arabia.’ The aim is to help solve the funding problems small and medium enterprises encounter in that part of the world.
   

Commercial Loan Software Market Share

• Top 7 companies of commercial loan software industry are Fiserv, FIS, Finastra, Q2 Software, Automated Financial Systems, nCino, and ICE Mortgage Technology holding around 14% of the market in 2024.
   
• These firms demonstrate different technological solutions for omnichannel commercial loan management. Fiserv emphasizes advanced automation for integration and streamlining the loan processing. FIS’s focus is on proprietary, native cloud, API economy platforms for versatility and growth. Finastra offers an entire suite with core banking and other innovative financial services that address the needs and likes of many institutions.
   
• Fiserv and FIS are enhancing their competitiveness by deepening strategic alliances while innovating. To improve its offerings in digital lending, Fiserv partners with startups in the fintech sector. FIS invests in newer technologies so that they can offer scalable solutions. Finastra pursues mergers and acquisitions for the expansion of their service portfolio and incorporation of new technologies to build a comprehensive commercial loan management platform that is future ready.
   
• Finastra’s focus on open banking combined with the adoption of cloud-native solutions enhances its efficiency in commercial lending. The Fusion Loan IQ platform is designed with AI-driven automation, predictive analytics, and integrated risk management tools for proactive loan lifecycle management. In addition, Finastra partners with other financial institutions to create API-based lending ecosystems that are compliant, scalable, and enhance user engagement in digital commercial lending services.
   

Commercial Loan Software Market Companies

Major players operating in the commercial loan software industry are:

• Automated Financial Systems
• Calyx Software
• Finastra
• FIS
• Fiserv
• ICE Mortgage Technology
• Linedata
• LoanPro
• nCino
• Q2 Software
   

Best performers in the market take advantage of multiple opportunities, for instance the formation of partnerships or collaboratives, mergers and acquisitions, launching new products and innovating existing ones, as well as investments in additional research and development. This process aids in the overall assimilation of new aspects and technologies. In the same manner, the business combination of manufacturers through merger or acquisitions facilitates an improved market reach, available resources, and the innovation of the offerings.
 

Businesses are integrating AI and machine learning tools into their systems to enhance automation in the processes of loan origination, underwriting and credit risk assessment. These processes enable enhanced efficiency, reduced errors, and faster approval of loans within the compliance unit. Regulatory compliance is more easily attained with greater speed and accuracy. The growing popularity of cloud-based services is largely attributed to their flexible scalability, increased safety, and straightforward integration with existing systems. SaaS allows lenders to eliminate upfront spending on IT hardware and services while ensuring timely maintenance and off-site accessibility.
 

Commercial Loan Software Industry News

• In July 2024, a leader in financial technology, FIS implemented the SMB Digital Lending solution that helps banks in the sourcing, underwriting, and funding of loans to small and medium-sized businesses (SMBs). This cloud-native, API-first SaaS solution is the first of its kind in FIS’ digital banking ecosystem under the SMB lending vertical.
   
• In October 2024, Navigant Credit Union partnered with Baker Hill to enhance its commercial loan operations. By integrating Baker Hill’s Commercial Lending solution with its Fiserv DNA core, Navigant aims to streamline loan origination and underwriting. This integration allows for better data management, eliminating redundant entries and multiple systems, thus speeding up loan decision responses and increasing operational efficiency.
   
• Cync Software introduced Cync Syndicated Lending in August 2024, a service for automated syndicated loan and participation loan servicing which is deployed in the cloud. The system improves monitoring and management of the assets and participants so that manual work is reduced by 75% and portfolio management is increased twofold. The system is capable of performing automated loan modifications, flexible drawdown of loan proceeds, real time risk assessments, and comprehensive collateral monitoring for a range of assets.
   
• In October 2024 Truv announced strategic integration with Byte Software to improve mortgage loan origination with a new employment and income verification for lenders. Truv’s services correspond to 96% of the workforce in the United States which allows lenders to save 60-80% on verification expenses. The integration makes use of automation provided by Byte and Truv’s use of direct source documents which improves workflows, decreases loan processing times, and enhances borrower experience. The goal of the partnership is to increase productivity of refinance lenders without increasing costs.
   

The commercial loan software market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

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Market, by Product

• Loan origination systems (LOS)
  • Application processing
  • Loan approval & funding
• Loan servicing software
  • Payment processing
  • Interest calculation
• Credit analysis and underwriting tool
  • Credit scoring models
  • Risk assessment tools
  • Financial statement analysis
• Others

Market, by Deployment Mode

• Cloud-based
• On-premises

Market, by Enterprise Size

• SME
• Large enterprise

Market, by End Use

• Banks
• Credit unions
• Mortgage lenders and brokers
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa