A lot has changed over the past few years, but one thing that hasn’t is the great Australian dream of owning property. Property, or real estate remains Australia’s largest asset class, with an approximate value of $9.7 trillion and it’s the opportunity to tap into this goldmine which has led to a flurry of proptech organisations sprouting over the past few years. According to the Proptech Association there are now more than 600 proptech businesses in Australia all competing to improve the real estate experience for customers in both residential and commercial sectors.
Proptech and Open Finance – a match made in heaven
When it comes to Open Finance, there are a broad range of use cases for proptech businesses, but one stands out from the rest is the ability to create a seamless user experience. Gone are the days when tenants are required to complete reems of manual documents – with Open Finance and partnering with the right data aggregator, tenant verification and onboarding is only a few clicks away. Through Open Finance proptechs can gauge a full picture of a tenants financial wellbeing and their affordability status helping to approve things like home loans and tenants looking to rent.
Additionally, proptech can help tackle the issue of money management as credentials are saved and verified as part of this process. This can be a big issue within the property landscape and an added benefit for companies using this technology.
Ultimately, the more volume of data collected through propetch, the more opportunity for businesses to scale based on more customer protection, confidence in loans and better understanding of customer base. This is how proptech can be used to expand and eventually go global.
The future of Proptech
Proptech offers great opportunities for the real estate industry based on the ability for open data and insights to allow for more tailored services to customers. Across the entire purchasing journey, data and insights will allow for a real estate body or professional to better understand their customer’s spending habits and finances, and better advise and cater their services for these needs. This is effective from the initial onboarding of the customer, advising purchasing or renting decisions, and assisting in upgrading rentals.
But the roadmap is expanding. We will soon see Telcos and Utilities also fall under the Consumer Data Right (CDR) umbrella presenting further opportunities for proptech organisations looking to offer efficient solutions that could service a tenant or homeowner across all the key moving home variables.
And guess what? It’s all driven by data.
As an Accredited Data Recipient under the CDR program, Envestnet® | Yodlee® can provide real estate companies and professional bodies in Australia with access to data that will provide a greater knowledge of consumers to help manage monetary decisions, deliver more personalised services and create an overall seamless user experience.