Fintech in the construction industry
The term 'Fintech' is derived from the words ‘financial’ and ‘technology’ and is used to describe the emerging start-up technology companies that are influencing and disrupting the financial services industry. The services that are being disrupted most by Fintech include mobile payments, money transfers, loans, fundraising, and so on.
The proliferation of the smartphone has drastically changed consumer behaviour, creating a culture of ‘always online’ users. Online services and apps have widened the scope of what users expect to be able to access and action, and when. This has inevitably influenced banking and financial services, where Fintech can generate considerable savings through agility, an ability to innovate and adapt, and there relatively small size in contrast with the operations of traditional banks.
Two examples of Fintech’s influence include:
- Crowdsourcing through services such as Kickstarter, enabling people to acquire funding quickly and easily.
- The cross-border transfer of money, through services such as TransferWise, which allows SMEs and individuals to transfer money far more cheaply and quickly than was previously possible.
In the construction industry, Fintech has begun to influence processes such as payments and supply chain management. For example, an Australian Fintech platform Progressclaim, has enables building contractors to administer payment claims, avoid disputes and reduce processing costs.
Both contractors and subcontractors collaborate on a single neutral platform that provides a central communication mechanism for the contractor to value work and approve subcontractor payments quickly and accurately, improving the management process throughout the supply chain.
For more information, see Progressclaim.
On 6 December 2017, HM Treasury announced the launch of The Challenge, a competition offering budding entrepreneurs the chance to win £2 million. The prize will be awarded for the development of an application to use rental payment data to improve credit scores and mortgage applications for Britain's 11 million renters.
Winning bids will be selected by a panel of leading figures from the Fintech sector, and an initial round of grant funding will be provided to six proposals, helping to turn the ideas into workable products. These six will then be whittled down to a handful of teams who will receive further funding and support to bring their ideas to market.
The Challenge will open to applications early in 2018, and development will conclude in October 2018. For more information, see here.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
- Accounting.
- Advanced construction technology.
- Building data exchange.
- Collaborative practices.
- Fair payment practices.
- Industry Disruption: 10 ways real estate is changing.
- Information and communications technology in construction.
- Life cycle costs.
- Proptech.
- Smart technology.
- Supply chain management.
Featured articles and news
IHBC’s response to Parliamentary Committee
On Levelling-Up and Regeneration Bill.
Finalists for 2022 CIOB Awards revealed
Over 70 managers and organisations shortlisted for the 14 awards.
Types of building sensors on BD
From biometric to electrical current, chemical and more.
Government mandates detectors in rented homes
Changes are due to come into force on 1st October 2022.
80% of major government projects are rated red or amber
Heed advice and insight of this report IPA tells the government.
The end of the games but continued calls for action
From the Commonwealth Association of Architects.
CIOB respond to the government call for evidence
For the Levelling Up, Housing & Communities Committee.
How are buildings and their occupants responding to extreme heat?
BSRIA's Technical Director reflects on recent weather patterns.
Landownership in England in 1909
A national valuation to fund old-age pensions.
The world’s largest Commonwealth memorial to the missing.
Long after the end of the defects liability period.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing in buildings.
Geometric form and buildings in brief
From the simple to the complex.
Understanding the changing nature of insulation
And the UK Government guidelines.
Three year action plan to improve equity, diversity and inclusion
Commitment agreed to by major built environment bodies.
The Construction Route – what needs to change?
Electrical skills, low carbon, high-tech and the building services revolution.
Deep geothermal power possibilities
Ultra-deep drilling with millimeter-wave beam technology.
BSRIA Briefing 2022- From the outside looking in
Looking at the built environment from space.
Competence requirements for principal contractors and designers
BSI standards 8671, 8672 and 8673.
Bringing life to burial grounds.
From failed modernism to twenty-minute neighbourhoods.
Design chill and design freeze
The gates process and change control.
Comments
Once reserved for determined start-ups and top-notch tech operators, Fintech is now getting the attention of major private sector firms and government planners alike. Itis turning out a regular feature in economyconclaves and strategic development plans. E.g. International Fintech UAB which is playing a larger part in the lives of business owners, consumers, and investors. Now investorsrecognize its potential as a developing industry.