Real Estate Data Tech Helps Banks and Valuers Balance Speed with Accuracy

March 24, 2024
Malaysia

Banks and valuers were forced to change the way they conduct business to amid the pandemic and now in the post-pandemic era amid increasing pressure for fast and accurate loan approvals.

With more demand, tougher competition, and changes in regulations, banks must scale up while still managing the bottom line.

“Finding a right balance between speed and accuracy is why the use of property data technology matters,” said Sasitheran Subramaniam, Director of Valuation and Advisory at Knight Frank Malaysia at a webinar organized by PropertyGuru DataSense last year.

Data technology uses tools like big data analysis, artificial intelligence and machine learning algorithms to analyse large sets of data and arm market players with actionable insights.

The following are three ways that bankers and valuers can benefit from data technology:

  • Identify and act on new trends

Trends in real estate transactions are invaluable in ordinary circumstances, but have become especially useful now as the pandemic has reshaped buyer preferences.

Access to clear data allows stakeholders to make informed decisions about their businesses, which will help them adapt to changing demands.

Our data technology at PropertyGuru DataSense allows us to break down transaction data into actionable insights, in turn helping our clients stay abreast of the latest trends and opportunities.

For example, insights from the recently published Q1 2021 Market Trends Report by PropertyGuru DataSense show that total residential transactions declined by 44.7% YoY in Q1 2021 – 61.2% were made by first-home buyers.

Joe Thor, Managing Director of PropertyGuru DataSense, believes this is indicative of returning confidence and growing appetite in the market for new homeowners – an opportunity for financial institutions to focus marketing efforts especially for products such as home loans and mortgages.

  • Narrow in on your target audience

Whether it is crafting more suitable products or targeting campaigns to ensure higher conversion rates, understanding who your buyers are and what they are interested in is key.

Using data technology, financiers are better able to identify and reach out to their target audience, allowing them to gain an edge over their competitors.

Our Vantage+ tool draws from over 6 million rows of transaction data, tracking market trends and property price analysis and studying purchasing intents or demographics to arm our clients with everything they need to understand their customers.

Vantage+ reports are also supplemented with quarterly DataSense publications that summarise key information into digestible insights for market players as well as the general public.

  • Quicken turnaround time without compromising accuracy

Delays in processing loan approvals could mean banks losing clients. On the other hand, rapid approval of applications can undermine proper due diligence and result in high default rates.

The key here is balance – which is why we developed data technology tools that enable valuers like Knight Frank to deliver that balance to their customers.

Residential markets in the US, Canada, Australia and Europe already use automated valuation models (AVM). 

One such tool is ProxyPrice, a proprietary valuation model designed to provide an automated indication of current market prices.

It analyses recent transactions against the current comparable market prices to instantly generate a property’s estimated value. However, it does not replace human valuation; rather it is an automated tool that complements a valuer’s opinion and speeds up time-consuming manual valuation.

Another tool for valuers and banks is ValueNet – a cloud-based valuation management platform that connects banks with their panel valuers seamlessly on a single platform.

This enables both parties to easily track requested tasks at anytime from anywhere and allow immediate communication, for a more convenient and harmonised relationship.

“Valuers have to be ‘objectively subjective’,” said Subramaniam. “Data technology helps us to objectively filter the data available, quantify it and show in an empirical model what many valuers subjectively know.”

In an increasingly fast-paced and challenging landscape where financers and valuers are facing both pandemic restrictions and a demanding loan climate so providing both speed and accuracy will set banks and valuers apart from competitors.

Data technology will help you find that balance and PropertyGuru DataSense tools help you achieve business goals.

Check out our website for more information on how our products can help you as a bank or valuer make more informed decisions on all things real estate.

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