Fintech is evolving to be a big name in the real estate industry due to increased demand from homebuyers for better service. Here’s how fintech is securing collaboration between all parties in a real estate transaction, according to First American’s proprietary Real Estate Sentiment Index (RESI) for the fourth quarter of 2018.
Enhanced homebuying experience
According to Mark Fleming, Chief Economist at First American, the largest group of prospective homebuyers, millennials, expect greater efficiency and convenience in their home-buying experience.
First America surveyed title insurance agents and real estate professionals across the nation to gauge their interest in fintech. Prospective homebuyers felt pressured to settle deals quickly before opportunities fade away due to low inventory and high home prices. Based on the respondents’ perspective, Fleming pointed out three key innovations: secure collaboration and communication portals, eClosing and remote online notarization, and chatbots to engage borrowers.
Emphasis on Security
Forty-five percent of title agents and real estate professionals surveyed said that the most important financial technology that helps potential homebuyers accelerate transactions is secure collaboration and communication portals. The respondents indicated that a secure platform allows them to correspond with lenders, real estate agents, escrow officers, and other parties involved with the real estate transaction.
Sophisticated Fraud Prevention Technologies
The report found that 34 percent of title agents and real estate professionals believe that remote online notarization and eClosings will have a large impact and will help homebuyers close their transactions faster and more efficiently.
Through remote online notarization, a notary can notarize documents remotely over the internet via tamper-evident digital tools, sophisticated fraud prevention technologies and live audio-video conferencing. Fleming notes that “eClosing, the electronic execution of mortgage loan closing, can also reduce the risk of manual errors in the closing process, improving loan quality alongside efficiency.”
Descent of Chatbots
Eighteen percent of title agents and real estate professionals indicated that tools that help with process efficiency and automation, such as customer service chatbots, would help deliver a more efficient home-buying experience.
“With more and more prospective home buyers searching for homes and information online, chatbots can help real estate agents engage potential customers in real time as they are browsing online listings, at any time of day. 2019 is anticipated to bring increased adoption of these innovations,” Fleming said.
Click here to read the full report.