• Railsbank Webmaster

Richer embedded finance experiences for property buyers

Updated: Apr 1




Railsbank APAC marketing manager Darren Thang takes a look at how property buyers are about to get an improved experience.


Increasingly, nonbank companies are warming to the idea of embedded finance experiences, offering banking-like services that provide a richer customer journey and one which also increases the lifetime value of their customers.


It has been shown that embedded finance experiences are a key monetization lever that many have already successfully weaved into their existing businesses.


The key is to offer a new approach for brands that harnesses the power of embedded finance experiences through a low cost turnkey platform that delivers the main finance elements into a brand's digital journey.


Critical activities


People set out to buy houses, not housing loans, nor housing insurance. However, getting a housing loan and insurance are critical activities along the value chain required for most property buyers. Additionally, there are many stakeholders involved in a typical property buyer’s journey, such as developers, listing portals, property agents, law firms, banks and insurance companies.


In this digital era, these stakeholders are beginning to understand the importance of re-inventing themselves. They are prepared to invest in their own journey of digital transformation to provide a better customer experience and explore new business models to improve their bottom line.


Embedded finance experiences are the key to accelerate the success of these stakeholders. The main question though, is what will a richer finance experience possibly look like for a property buyer and what kind of new business opportunities can be explored?


Let's say you are looking to buy a house, the first place that property buyers will usually go to, is a quick search on listing portals. As property agents are representing owners, one can expect extensive dialogues between potential buyers and agents between each listing. Now fast forward - upon making the decision to buy the property, other stakeholders come into play, such as banks and insurance companies, so that buyers can explore the best possible loan and insurance options for their new home.


Main problem


However, the main problem is that property agents have to refer their clients to third parties and that means losing control of their customers’ journey. This is where embedded finance experiences are crucial and be the most important cog to improve the customer journey undertaken by property buyers. Given that property agents are the main touch point for a property buyer, property agencies can use embedded finance experiences to establish a direct relationship and touchpoint with the end consumers and yet add value to agents' business.


Remember that as property buyers buy a house, most people will need to take up a housing loan and even purchase the relevant insurance. This causes friction in the customer journey as clients are inevitably passed on to external parties. The good news is that by implementing embedded finance experiences technology, traditional enterprises like property agencies can also expand into new business models. They can offer loans and insurance to property buyers without the need to invest heavily in building in-house technology from ground up and relevant licence applications.


Imagine this scenario - a property agency can build an app, a digital ecosystem and expand their offerings as a “middleman” to target end-consumers. As the first touchpoint for end consumers, a listing module could be built for agents to list their listings.


Cake


The icing on the cake will be property buyers able to make payments, take up a housing loan and even purchase relevant housing insurance from the property agency, all via the app. What’s more, as the company captures important data along the journey, deeper analysis can then be done such that future relevant listings can be recommended and when required, customers can refinance their home loans and any other financial services made available by embedding finance.


From a payment perspective, the property agency can take control and optimise the finance experience when customers make payments via the app for consumption of other products and services, such as renovation services, furniture purchases, home cleaning services and many others. All thanks to embedded finance experiences, the property agency has the potential to be in complete control of the finance experience of property buyers, increasing the lifetime value of their customers and unlocking new revenue streams.


The scenario painted above is just one of the ideal possibilities of how traditional nonbank enterprises like a property agency can benefit by focusing on optimising embedded finance experiences for their customers. As different stakeholders in the property/real estate industry would be able to make use of embedded finance for different aspects of their businesses, I would recommend speaking with our Railsbank APAC team to explore how we can be your strategic partner to implement embedded finance technology, to bring about richer finance experiences for your customers and improve the bottom line for your company.


To get more inspiration on how embedded finance can be implemented in different scenarios and the business opportunities that it brings, please ask us for more information.