How PropTech can use Open Banking for greater results

Across the UK and Europe, property technology (PropTech) is rapidly gaining momentum, enhancing the way properties are bought, sold, rented, and managed. Yet, there's an untapped potential in these markets – a chance to harness more efficient payment processes, secure and accurate data handling, and optimised operational methodologies.

Unravelling PropTech’s Potential

PropTech companies are at the forefront of transforming real estate experiences. They are not just simplifying property transactions but are also paving the way for faster and more efficient operations, especially in realms where technology was previously underutilised. This includes aiding property seekers in both short-term and long-term housing solutions.

PropTech Market: A Growth Perspective

• The UK PropTech sector is expected to expand with a CAGR of approximately 14% from 2022 to 2028.

• In Europe, a 15% CAGR is anticipated over the same period.

• Germany is projected to see a market size of around $4137 million by 2028.

Such robust growth indicators suggest a prosperous future for PropTech in these regions. The question then arises – what could further elevate the performance of these businesses? The answer lies in adopting open banking.

Open Banking’s Impact on PropTech

The real estate sector has long grappled with challenges like outdated procedures, fraud risks, and lack of digital progress tracking. PropTech companies, evolving with technological advancements, have begun to adopt open banking, which offers more than just improved technology.

Through open banking, financial data becomes more transparent and reliable, facilitated by APIs. This evolution benefits both property agents and clients by reducing manual efforts, minimising error possibilities, and enhancing operational efficiency. Open banking positions PropTech firms to offer more effective, secure, and faster services, thereby improving their market standing and financial outcomes.

How Open Banking Refines PropTech Operations

• Enhanced Data Management for Buying and Selling: The process of buying a home involves intricate data collection and risk analysis. Open banking streamlines this by providing swift and precise financial overviews, which accelerates lending processes and ensures realistic loan assessments.
• Advanced KYC and Income Verification for Renters: The rise in rental demand necessitates reliable tenant screening. Open banking delivers a secure solution for verifying bank accounts, safeguarding both landlords and tenants.
• Efficient and Secure Transaction Processing: With open banking, rent and mortgage payments are more straightforward, quicker, and secure, thanks to direct bank transfers and enhanced fraud prevention measures.

Join the Open Banking Movement in PropTech

Is it time for your PropTech business to embrace open banking and stay at the forefront of industry advancements? Open banking not only ensures secure and precise transactions but also fortifies the trust in financial dealings within the real estate sector. As PropTech continues to be a pivotal element in real estate, integrating open banking is a strategic imperative.