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Industry Landscape
The financial services brokerage industry, particularly in small business and real estate lending, is experiencing robust growth driven by demand for alternative and rapid financing solutions. Digital platforms and fintech innovations are streamlining loan matching and application processes. While traditional banks remain significant, brokers like Velocity Lending Solutions are filling gaps for businesses and investors seeking speed, flexibility, and less stringent documentation, especially post-pandemic with economic shifts influencing credit markets.
Total Assets Under Management (AUM)
Total Small Business Loans Originated in United States
~$700 billion (estimated for 2023)
(15.0% CAGR)
- This includes both traditional and alternative lending.
- Growth is driven by increased demand from small businesses.
- Fintech platforms are contributing significantly to origination volume.
Total Addressable Market
1.5 trillion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
AI-powered Loan Underwriting
Leveraging artificial intelligence and machine learning to rapidly analyze vast datasets for credit assessment, risk prediction, and automated loan decisions.
Blockchain for Loan Securitization
Utilizing distributed ledger technology to create transparent, secure, and immutable records for loan origination, servicing, and securitization, reducing fraud and increasing efficiency.
Open Banking APIs
Enabling secure and standardized data sharing between financial institutions and third-party service providers to streamline application processes and offer personalized financial products.
Impactful Policy Frameworks
Consumer Financial Protection Bureau (CFPB) Section 1071 (2023)
The CFPB's Section 1071 of the Dodd-Frank Act requires financial institutions to collect and report small business lending data, including demographic information and lending decisions, to promote fair and equitable access to credit.
This policy will increase transparency in small business lending, potentially leading to more equitable access to credit but also requiring Velocity Lending Solutions and its partners to implement robust data collection and reporting mechanisms.
Fair Credit Reporting Act (FCRA) Modernization Efforts (Ongoing)
Ongoing discussions and potential legislative efforts aim to modernize the FCRA to address data privacy, security, and accuracy concerns in an increasingly digital lending landscape.
Updates to FCRA could impact how Velocity Lending Solutions and its credit repair partners access and utilize consumer credit data, potentially requiring stricter compliance protocols for data handling and reporting.
State-level Licensing and Disclosure Requirements for Non-Bank Lenders (Various States, Ongoing)
Many states are increasingly implementing or updating licensing requirements and enhanced disclosure rules for non-bank lenders and brokers, including those offering alternative financing.
Velocity Lending Solutions must continuously monitor and comply with diverse state-specific licensing and disclosure mandates, which could impact their operational scope and the types of products they can offer in different regions.
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