Financial technology, often referred to as fintech, has been transformative across industries. Innovation has resulted in broad-based changes across all aspects of real estate. The information provided below are examples of how fintech is changing real estate in 2019.
Fintech hasn’t just improved certain functions in real estate, it has become revolutionary. For instance, there are fintech applications in real estate that offer digital mortgage services and digital loan servicing solutions. Applications offered by companies like Opendoor, Zillow and SS&C Technologies are changing the infrastructure of real estate at the root instead of the surface. While there have been some challenges with integration, fintech in real estate remains transformative and promising. Optimizing the user experience continues to be a priority, which is often the case with disruptive technologies.
Another way in which fintech has changed real estate is by making an extensive amount of data available. Data that once required a significant effort to obtain is now available through data scraping methods and API integrations. Access to data in real estate has enabled the use of artificial intelligence for the purpose of valuation, forecasting, and data-driven decision-making. It’s the type of data that could have been ascertained in the past, but only on a limited scale and not without tremendous effort. What was once a masterful undertaking is now a relatively minor data gathering function.
Fintech in real estate has facilitated a greater level of transparency for consumers. Potential buyers are able to access more information related to a property and transaction, which improves the overall experience. It also enables consumers to make more informed decisions. In addition to having access to more data, the different processes involved in a real estate transaction are less fragmented and much faster. Quite frankly, more consumers in real estate expect to have access to information in a way that’s convenient and transparent. It’s a byproduct of innovation across all industries.
Real estate has needed a change and the disruption caused by fintech has been welcomed. It’s the reason why investors have spent billions of dollars on fintech in real estate, especially in recent years. This is a trend that isn’t going anywhere, which means we can expect further developments in 2020 and beyond.