Article in immobilienwirtschaft: “Real estate banks. New spectrum needed“


Very detailed and informative article in “Immobilienwirtschaft 04/2019” about the necessary transformations of real estate financiers and the digitisation of commercial real estate financing.

The journal “Immobilienwirtschaft” sees the traditional mortgage banks in the stranglehold of low interest rates, a flattening economy and digitisation.

The pressure on margins caused by low interest rates, negative ECB deposit rates and increasing regulation is putting the traditional players under increasing pressure. In addition, there is competition – currently primarily with mezzanine, but increasingly also with senior loans – from alternative providers in the non-banking sector such as insurance companies, pension funds and credit funds.

In this environment, digitisation is both a challenge and an opportunity. With regard to digitisation, the traditional view still prevails that commercial real estate financing – characterised by high loan volumes and small number of pieces – cannot be standardised and is therefore largely “people business”. It is therefore rightly pointed out that crowdfunding/crowdinvesting platforms can at best be niche providers, as the focus here is on mezzanine capital and subordinated loans with rather smaller volumes. Compliance issues such as data protection and banking secrecy are also important aspects for banks against which digital platforms will have to be measured. However, the potential should not be underestimated: With the increasing experience of platform providers and real estate investors as users, more complex cases could soon also be handled platform based.

In addition, the view that digitisation also offers opportunities for traditional players is increasingly gaining ground. They can reduce costs, monetise the existing – but unstructured and not digitised – data treasure and open up new sources of revenue. The syndication of loans could become much easier and cheaper. However, efforts at digitisation in the traditional banking sector have so far been fruitless. Trendsetters like BerlinHyp are therefore unafraid of fintech and digitization and are betting on cooperation and equity investments.

In this initial situation credX is excellently positioned:

As an independent platform, we are attractive to banks, alternative investors and independent deal advisors alike. Unlike crowdinvestment platforms, we focus on large-volume business with institutional lenders and offer individual contracts in all common instruments (loans, promissory note loans, investments and bonds). Our audit-proof processes are tailored to the high requirements of major customers. As Intermediary for Financial Investment Products we are subject to the relevant regulations (KWG, WpHG, GWG etc.) in accordance with § 32 of the German Banking Act (KWG).

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