Making sense of the pace of change
If you feel like things are changing at an increasingly rapid pace, you’re not alone. We are well into the ‘fourth industrial revolution’, where transformation is happening 10 times faster than the first.1
Fintech, the internet of things, machine learning – terms like these are the currency of this new digital economy. This article makes sense of the jargon, and looks at what they really mean for your business, your clients and the way your industry will operate in the future.
The rise and rise of – techs
From lawtech and insurtech to proptech, digital disrupters are leveraging new technology to create entirely new service models for both consumers and businesses.
“All of these techs are potentially new competitors in your market. And they have more muscle than you might think.”
Innes Kirkwood, Macquarie Business Banking’s National Head of Residential and Commercial Real Estate, describes ‘proptech’ as “technological innovation specifically designed to improve processes and remove friction in the real estate sector,”
“Most proptech innovations start with the client experience, and focus on improving one (or all) of the ‘three Ts’ – trust, transparency and time,” he explains. “In every area of real estate there are manual, inefficient processes and a lack of transparency. They can also reduce costs, enabling highly competitive pricing.”
Investment in these tech platforms has increased exponentially. Four years ago there was around $US221million invested into property technology – now proptech is attracting over $2.6 billion in capital.2 That’s a 1,200% increase – in just four years.
One example is Rentberry, which removes friction in the letting process. “This could disintermediate the property manager for that part of the process,” comments Kirkwood. Another is Macquarie’s new DEFT Auction Pay, which finally removes the need to pay a home deposit by cheque on auction day.
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Macquarie has been providing Business Banking solutions for over 30 years and provides SME clients with tools and strategies to grow and develop their business. You can get regular updates by subscribing to the monthly newsletter, Strictly Business by visiting macquarie.com.au/businessbanking. If you would like to find out more about how Macquarie can support you to take your business further, call Sam McCarthy at our Parramatta office on 0417 518 724 and be connected with one of our banking specialists.
This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (“Macquarie”) for general information purposes only. This information does not constitute advice. Opinions expressed are subject to change without notice. No member of Macquarie accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this information.
1 The four global forces breaking all the trends. McKinsey, April 2015
2 Real estate technology – Threat or opportunity? KPMG, May 2017
