‘Fintech’ is a term used to define the use of technology to make finance business easier. Cloud-based applications are being used to help brokers.
The first part of the bridging finance process is to submit applications on behalf of their clients to one or more lenders. Applications can be made to some lenders directly using apps.
Once a loan has been agreed, paperwork must be submitted to support the application. An app can be used to monitor this process and to communicate with lenders and borrowers if there are delays in submitting or checking documents.
Some large lenders are looking at automating the loan decision process through artificial intelligence, but this is unlikely to be adopted by smaller bridging lenders. Bridging applications can be complex and not suitable for a machine that relies on fixed algorithms. A human loan assessor can look at all the factors of a loan application and make decisions based on each application individually.
Fintech is suitable for cutting down on the routine work of brokers and lenders, and for monitoring the loan application process. Humans are still directly concerned with the loan process, and fintech there to assist them rather than replace their jobs.
The aim of technology is to make bridging finance easier and make sure that there are no delays in processing loan applications. Fintech can help bridging finance brokers keep up with high volumes of business and enable brokers to handle more clients while maintaining excellent customer service.