The real estate market has been in a state of flux since the global pandemic hit, with some areas seeing a drastic reduction in the number of homes being sold while others have seen an increase. With so much uncertainty in the market, it is not surprising that financial technology (FinTech) has made its way into the mix. Financial industry innovator Jason Simon discusses some of the ways FinTech is impacting the real estate market, and what this means for investors, lenders and even buyers.
According to Simon, FinTech has a major impact on the way that real estate transactions are conducted. He notes that the use of online platforms and mobile apps has made it easier for buyers and sellers to connect with each other and has resulted in a more efficient and streamlined process.
Simon cites several examples of how FinTech is changing the real estate market, including how the use of online platforms has made it easier for buyers and sellers to connect. In addition, mobile apps have made it possible for buyers and sellers to conduct transactions anywhere at any time.
“The biggest change that I’ve seen is the way that people are able to access financing,” Simon says. “In the past, if you wanted to get a mortgage, you had to go through a bank or other traditional lender. Nowadays, there are a number of online lenders that can provide financing.”
This increased competition among lenders has led to lower interest rates and more flexible loan terms for borrowers. “It’s a great time to be buying a home,” Simon says. “Financing is more accessible than ever before.”
In addition to making it easier to get a mortgage, FinTech is also changing the way that properties are bought and sold. “There are now a number of online platforms that allow buyers and sellers to connect with each other directly,” Simon says. “This has made the process of buying or selling a home much simpler and more efficient.”
Overall, Simon believes that FinTech is having a positive impact on the real estate market. “It’s making it easier and cheaper to buy a home, and it’s making the process of buying or selling a property much simpler,” he says.
With the rise of FinTech, there has been an increase in the number of startups that are looking to provide innovative solutions to the real estate industry. However, these startups face a number of challenges when it comes to getting their products and services adopted by the industry.
One of the biggest challenges is that the real estate industry is highly regulated. This means that any new technology or solution must comply with a myriad of regulations. This can be a significant barrier to entry for many startups.
Another challenge is that the real estate industry is slow to change. While there is a growing interest in FinTech solutions, many companies are still hesitant to adopt them. This reluctance can be attributed to a lack of understanding of how these solutions can be used, as well as a fear of change.
Finally, another challenge faced by FinTech startups is that they often lack the necessary customer data to show the impact of their solutions. This data is essential for demonstrating ROI and convincing customers to adopt new technologies. Without it, many startups struggle to gain traction in the market.
As the world progresses, technology does too. And as technology advances, so does the way we conduct business. The real estate market is no different; in fact, it may be one of the most affected industries by technological change.
Simon believes that the real estate industry will continue to be disrupted by technology – specifically FinTech. He expects blockchain to play a big role in streamlining and simplifying transactions, but points out that regulations will be slow to catch up to the innovation.
Still, by leveraging FinTech innovations and applying them effectively now, businesses can stay ahead of the curve and remain competitive in a rapidly changing environment.