According to a report from White Clarke Group, the re-emergence of small and regional banks looking to expand services to existing manufacturers, dealers and retailers is continuing to spur growth in the floorplan finance market. This is providing opportunities for many traditional lenders looking to diversify their businesses and expand into wholesale, with growth expected to continue throughout the year.

Lenders are fast realizing that the necessity for the right system partner to help them get to market quickly with low operating costs is imperative. The key is finding a scalable solution that can provide an economical yet reliable, future-proof system to fit both the current size and growth of their businesses.

Kurt Ruhlin, chief operating officer at White Clarke Group, said, “We have seen a surge of expansion in the market and a need to increase operational efficiency. As a result, many new or expanding wholesale lenders have selected the CALMS Compass wholesale platform to fulfill their needs. The need for a quick to market system has become critical, and the out-of-the-box functionality has allowed for many new implementations to go from decision to live in less than 90 days.”

New compliance and regulatory requirements are also playing a pivotal role in the emergence of start-ups, small companies and manufacturer captive lenders, which find it easier to raise capital due to their flexibility.