FinTech
Financial technology or FinTech is all about finance and banking, while, PropTech is all about real-estate. Both of these terms are generated within technology which is making their own field more convenient accordingly. The digital transformation of these fields is one of the greatest beneficiaries that we can experience in almost every facet of our daily lives.
Fintech started trending in the global market for 12 years, making business owner and customers more instinctive and convenient. By utilizing specialized software and algorithms, businesses are able to make their operation more systematic, easy, and user friendly. Fintech is governed by productive avenues like online exchanges, online payment systems, and crowdfunding equity and debt platforms. It provides a foundation for real estate to thrive. According to research, China moved 96% of its e-commerce sales without the services of a bank in 2018.
PropTech in Real estate Industry
Proptech companies has a wide variety of success in recent years, employing an innovative technology for its business operations. Big-data, AI (Artificial Intelligence) and block chain are driving significant innovative changes altogether areas of the property sector. Virtual reality is yet another area to be noticed which is utilizing 3D imaging for consumer property search.
There’s every likelihood that a digital approach to the property will become more prevalent in the coming years. So, PropTech is particularly what we look for innovative ways to strengthen and grow the industry amidst the global COVID-19 pandemic. PropTech can help make the industry more spontaneous and convenient, which can offer more value for clients in the most relevant way.
FinTech and PropTech are correlated
These terms FinTech and PropTech are correlative to each other. There is no way to buy property without the involvement of finance and banking. According to research, most people are using new technology. Bank and real-estate companies have realized that they neither can stop the change nor ignore new technologies.
By combining Fintech and Proptech, we can make buying property more intuitive and convenient. That’s why real-estate fintech investment was increased by 18% by 2018 according to Deloitte’s research. Real estate is focusing on FinTech by introducing new technologies that can make real-estate’s financial processes easier.
PropTech has changed the way we buy, sell, or interact with our customers whereas, FinTech has changed the way of the financial transactions. They both collectively applied solutions for real-estate development and the management thereof. They have also created an opportunity for investors and entrepreneurs to secure their investment and further create an array of business opportunities in the field of real estate.
Company using FinTech
Globally, companies like Zillow Group, Fiserv, Fair Issac Corporation, the bottom line; has been able to effectively utilize the avenue of fintech in their businesses successfully. Nepal, an emerging market also has been capitalizing on the services provided by fintech companies like E-Sewa, Fone Pay, Ime-pay, Cell pay, in the real estate industry.
Online listing payment, Digital marketing payment, home loan, crowd-funding are some of the heads where fintech can be effectively used in the real estate eco-system without physically being present.
Benefits of FinTech
Speed is one major factor that can change the state of the business. FinTech can improve the speed of commercial real-estate business by utilizing artificial intelligence and block chain. It helps in making business operations simpler and more transparent. Algorithms of AI can read big piles of data faster than humans by reducing errors and block chain enhance security.
Construction and Real Estate owners, operators, and developers can collaborate with FinTech startups. It can help in raising equity, securing joint venture partners, or even sell their properties by getting access to recognized institutional investors.
Owners can also partner with FinTech startups for their convenience. FinTech helps in individual project development and obtain loan offers from a diverse set of lenders including banks, private equity, and Crowdfunder. For instance, digital lending marketplaces, such as stack Source, help connect Construction and Real Estate owners and lenders.
Conclusion
So, the study shows that there is no alternative besides going digital. FinTech, Digital Marketing, A.I., Blockchain, E-commerce will lead the market until better technologies substitute them. Smart investors and businessman will turn their decisions towards technology to robust their businesses as a better and effective business strategy. We can foresee PropTech and FinTech operate side by side to make the real estate industry more productive and systematic.
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