Fintech and Property: What You Need to Know
Using Fintech in the property industry
Australians embrace technology in everyday life and they expect it to be part of everything they do.
For the last three years, Fintech has been one of the fastest growing industries in Australia, with the number of registered companies growing from around 100 in 2015 to 600 in 2018.
With the rapid growth of the industry in Australia, the door is open for the property industry to benefit.
What Fintech products will the property industry gain the most benefit from?
Data Analytics: Using information and data from Fintech platforms will help advisors and agents to make informed decisions for their clients. They will be able to get a better understanding of the client’s overall position, while also increasing the level of personalisation for the client.
Personal Finance Tools: New Fintech products, especially in the personal finance space, have the potential to transform the real estate industry. Knowing your overall position and advisors having access to all that information in one place allows them to introduce products and properties that are tailored for their financial position, and once they have purchased it allows them to track the performance of the property.
Investment Property Calculation Tools: New forecasting tools are also on the way. The current gap in the market is currently filled by excel spreadsheets.
New products coming to the Australian market will allow you to add acquisition costs, investment income, funding structures and deductions for properties to help with projections and calculate after tax cashflow for your entire property portfolio. These tools will be beneficial for agents, advisors and also avid property investors and will improve a process that is currently very time consuming and outdated.
Raising Capital: There are a number of avenues available for raising capital and the digitalisation of fundraising will open up new opportunities. Using Fintech products will not only speed up the process, but it will also open the door for reaching new investors through a number of online platforms.
Blockchain: This technology can potentially transform the property industry. There are a number of ways this can happen but the speed of transactions and the increase in transparency it would bring to the industry are the two that stand out.
Although these are the two that stand out right now, there are many people looking into how this new technology can be best used and alternative ways it can disrupt the industry.
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