Loan brokers are intermediaries who help individuals, businesses and other entities secure loans from various financial institutions. They provide a critical service by connecting borrowers with lenders, facilitating loan transactions and helping clients navigate the often-complex process of applying for and securing financing.
The loan brokers market consists of revenues earned by entities (organizations, sole traders and partnerships) by providing brokerage products and services that simplify the loan process by finding and negotiating suitable loan options.
The global loan brokers market was valued at $162,310.00 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 9.00%.
Rise In Disposable Income
The loan brokers market was driven by the rise in disposable income during the historic period. As consumers' financial resources increased, their capacity to take on loans for personal and business purposes grew, driving demand for loan brokerage services across products like mortgages, personal loans and credit cards. With greater spending power, borrowers sought additional financing options for home purchases, education and investments, often turning to loan brokers to navigate the available options. In response, financial institutions offered more customized loan products. For instance, according to the Bureau of Economic Analysis (BEA), a US-based government agency that provides official macroeconomic and industry statistics, disposable personal income per capita in the United States increased from $57,339 in November 2022 to $61,047 in November 2023. Also, in December 2022, according to the Census and Economic Information Center (CEIC), a UK-based provider of economic research on emerging and developed markets, the annual household income per capita in Russia reached $7,873.854, demonstrating an increase from the previous value of $6,566.509 in December 2021. Therefore, the rise in disposable income supported the market growth.
Innovative Automated Processes To Streamline Loan Approvals
Major companies operating in the loan brokers market are developing advanced solutions, such as digital verification processes, to streamline and expedite the loan approval process for homebuyers. Digital verification processes refer to the use of technology to verify a borrower's financial information and identity electronically, speeding up and simplifying the loan approval process. For instance, in December 2023, LoanDepot, a US-based mortgage lender company, launched MelloNow, a fully automated underwriting engine that revolutionizes loan processing by generating instantaneous borrower conditions. With its advanced digital verification engine, it swiftly analyzes credit reports, detects fraud and validates income and employment data at the point of sale. This innovative technology eliminates the delays and friction points typical of traditional loan evaluation and approval processes. Streamlining these steps, not only accelerates the lending process but also enhances the overall quality of loans, resulting in a more efficient, secure and reliable underwriting experience for both lenders and borrowers.
The global loan brokers market is fairly concentrated, with large players operating in the market. The top ten competitors in the market made up to 31.98% of the total market in 2023.
Loan Brokers Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global loan brokers market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for loan brokers? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The loan brokers market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider loan brokers market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component, by application, by end-user and by enterprise size.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the loan brokers market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by component, by application, by end-user and by enterprise size in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for loan brokers providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Component: Products; Services
- 2) By Application: Home Loans; Commercial And Industrial Loans; Vehicle Loans; Loans To Government; Other Applications
- 3) By End-User: Businesses; Individuals
- 4) By Enterprise Size: Large Enterprise; Small And Medium-Sized Enterprises
- Companies Mentioned: Bank of America Corporation; Royal Bank of Canada; BNP Paribas; Truist Financial Corporation; Mitsubishi UFJ Financial Group Inc.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; loan brokers indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.