The word ‘FinTech’, stands for Financial Technology. It is used to describe the emerging financial services sector. In the past, the term was used to describe the back-end of established consumer and trade financial institutions. In more recent times, it has expanded to include any technological innovation in the financial sector, including innovations in financial education, mobile investment payments, money transfers, loans, fundraising, asset management and even crypto-currencies.
Fintech is revolutionising the business industry, making starting a new business easier than ever before and giving consumers the ability to make payments from anywhere around the world.
The property industry is no different; it too is affected by FinTech. How exactly? This is what we will be discussing in this article. These are the ways Fintech is affecting real estate:
Fintech has made it possible to develop alternative office locations, away from traditional business districts. FinTech makes it possible to split operations, such as moving back-end operations away from central business districts to office areas with lower rental costs.
Automation in FinTech has helped reduce the amount of labour necessary in the finance sector. This in itself has potentially huge effects on the employment market and may lead to considerable downsizing of bank offices and a decrease in the demand for office and retail space in the long run.
Ease of Access
In places like China and other developing markets, scores of people still do not have easy access to banking services. FinTech makes it possible to provide easier access for these people through a wide range of banking services.
With integration to the internet, it has now become possible for people to connect with lenders all around the world, allowing a significantly broader market to lenders than ever before. This also means that people have more options. In terms of real estate, and developers can now find lending sources that help them to quickly find an option that best suits their needs.
Real estate transactions take time; the more complicated the loan the longer it will take. With FinTech, you can go to online lending portals and cut through any unnecessary churn. You can receive multiple proposals from many different lenders and begin the transaction process with just a few clicks.
Catering to a new generation
Many old-school developers enjoy the individualised banking processes of yesteryears. Today’s generation looks at things differently. They look for ease of process, speed, banker’s ability to get through obstacles, and so on. They want the deal done as soon as possible. Fintech and the internet help speed up the process, saving time for the customer and the developer. Developers must change their mindset to cater to today’s generation.
Increased Tech Integration
Increasing integration with technology encourages tenants to look for buildings with modern technology in its infrastructure. High-speed internet with seamless wireless connectivity, energy-efficient electricity systems and space for storing tech equipment will become essential and more sought after.
All around better
Consumers have always needed to go through intermediaries like banks for financial services. Technology is changing that, bringing easy access to financial services for everyone, everywhere.