Faster, Targeted and More Precise: How data tech helps banks and valuers balance speed with accuracy

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By Vigneswar Rajasurian

The pandemic has changed the way many industries, including banks and valuers, conduct business. With more demand for fast and accurate loan approvals, banks, as well as valuers today, are forced to scale up to meet increasing demand, tougher competition and new regulations 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 on 9 September 2021.

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. Here are 3 ways bankers and valuers stand to gain by incorporating data technology into their toolkits.

  1. Identify and capitalize on new trends

Such trends are invaluable in ordinary circumstances, but even more so now as the pandemic and resulting movement control orders have changed buyer preferences. Access to clear data ensures stakeholders do not blindly navigate these unprecedented times and are instead able to adapt to meet changing demands.

We use data technology to break down transaction data into actionable insights to help our clients keep up to date with the latest trends, look out for new opportunities and respond proactively to consumer needs.

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 – this is an opportunity for financial institutions to focus marketing efforts especially for products such as home loans and mortgages.

2. Nail 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. Leveraging on data technology allows financers to better identify and reach out to their target audience, thus gaining an edge over fellow 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.

3. Quicken turnaround time without compromising accuracy

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

For banks, delays in processing loan approvals could mean potentially losing a client. On the other hand, rapid approval of applications can undermine proper due diligence that can be costly if mortgagees default. 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.

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. 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 potent 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 any time from anywhere and allow immediate communication.

4. Create opportunity

“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, providing both speed and accuracy will set companies apart from competitors. Data technology will help you find that balance.

At PropertyGuru DataSense, we use data technology in all our services to ensure our clients stay competitive in a demanding market. This is only one of the many ways we can help. Check out our website for more information on how our products can help you make more informed decisions on all things property.

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