According to a recent Microsoft survey, over 90 percent of people said that dealing with a company that uses outdated technology would cause them to consider taking their business elsewhere. This means that if the technologies your lending institution uses (aka your tech stack) are lacking, it may be affecting your lending institution’s success. Not to mention, outdated technologies may be leaving your institution vulnerable to security threats. Many lenders use outdated software and tech stacks, creating inefficiencies and slowing down the financial closing of loans.
Underwriting is error prone and slow. In fact, it can take up to 1,500 hours of work to close one deal. With Build Back Better and other social spending packages, there will be a huge influx of LIHTC and other housing-related funds from state and federal governments, meaning lenders will now be underwriting more deals than ever and lending institutions in the affordable housing space will need to become more efficient to scale up. Is your lending institution prepared to handle this influx with your current tech stack?
What does your tech stack look like?
You may think your current tech stack is working for you, but using outdated software not only makes the loan process time-consuming and frustrating, but could be severely hindering how efficiently your institution is working. If you’re not sure whether or not your software is up-to-date, ask yourself the following questions:
- Can data be efficiently used and shared cross-functionally between teams?
- Is data transfer and building dashboards manual?
- Is it API-based?
- Does it exist in the cloud or is the database running on servers on-prem?
- Are you still utilizing Excel to update your database?
- Does your interface look like it’s from the 1980s?
If you answered yes to any of the above, it’s time to consider searching for a new solution.
Finding the right solution for your institution
Now that you understand the disadvantages of having outdated software, it's time to find a platform that's fit for the 21st century. When exploring solutions, there are a number of things to consider:
Software as a Service - Software as a Service (SaaS) solutions take the burden of management and maintenance off of your institution and automatically update as necessary. They’re high-touch and offer a high degree of flexibility, enabling users to pick the features they want and fully customize them. These platforms are built by industry experts and bring in the best of industry practices and cutting edge technology to allow you to work from anywhere at any time.
Cloud-based - In the wake of the digital age, the revolution of the cloud has taken the technology world by storm. The cloud enables things (software, services, even your iPhone photos!) to live on the Internet, making them accessible to anyone, anywhere. Because items on the cloud are available to anyone with an Internet connection, it's collaborative and easily shareable.
API-based - APIs, or application programming interfaces, can connect (or communicate with) any number of platforms so manually uploading or downloading data isn’t necessary. This is not only efficient since it’s instantaneous, but it significantly reduces the chances for error.
Based on modern databases - Data collection and analysis techniques have greatly evolved over the past 20 years. By utilizing databases that draw upon these novel sources and methods, you can procure a cutting-edge solution that harnesses data in an innovative and effective fashion.
Searching for the right features
When searching for the best 21st century housing finance experience, there are also a number of imperative features the platform should host:
Collaborative - A solution that allows all stakeholders to converse, assign each other tasks, and more is crucial for project management, speeding up deal velocity, and closing with no preventable errors.
Shareable - Your solution should create a frictionless experience in which data is seamlessly shared and collated externally and with members of your internal team.
Organized - Does the platform allow you to keep your documents organized? With an average of 120 documents needed per project, searching for the document you need can be overwhelming, frosting, and even delay your progress. Look for a solution that allows you to upload documents, keep them organized, and are easily accessible in one place.
Data-driven - The importance of data can’t be understated. You need a platform that can easily visualize your data and offer data-driven insights—not just dashboards—enabling you to maximize profits and giving you a competitive advantage.
Builders Patch can support your lending institution’s digital transformation with a full suite of tools tailored to maximize efficiencies in the affordable housing space, including:
- Project-level and portfolio-level data analytics and visualizations
- Most recent pro forma information for each project
- Underwriting/Investment memo for lenders/investors
- Actionable insights on pre-construction steps for each project
- Team collaboration with task management, file sharing, and chat
Try our simple and intuitive plug-and-play solution to learn how we're helping lenders acquire more multi-family housing loans quickly and accurately.
It’s 2022, and it’s time for your tech stack to reflect that. By revolutionizing your tech stack with the power of Builders Patch, your lending institution can gain a competitive edge, close deals with greater accuracy, and seamlessly collaborate. To learn how technology, in addition to policy and construction, can help our country’s affordable housing crisis, download our whitepaper here.