With a contribution of about 7% to India’s annual GDP, the housing market is one of the country’s fastest-growing industries. Since the pandemic, there has been a marked surge in the need for real estate, particularly for residential dwellings.
To meet this growing demand, ICICI Bank has created a digital banking STACK for real estate that combines digital and physical solutions to allow contractors, real estate investment trusts (REITs), and alternative investment funds (AIFs) to initiate financial transactions conveniently and quickly on a single platform.
The real estate sector STACK is a safe, streamlined, and interconnected banking platform that aids real estate players in streamlining the management of their financial activities. To REITs and AIFs, it provides services for digital collection, reconciliation, surplus distribution, as well as custodial services.
The STACK improves the financial & operational efficiencies of the developers by providing a single dashboard to manage all the services, including the digital creation of account numbers for RERA registration, building finance, lease renting discounting, collection, & refunding of all the projects. Additionally, it offers developers specialised collecting solutions that are designed for both projects pre- and post-launch.
“There is a substantial growth momentum in the real estate business across the country, including tier I, II, and III cities,” stated Mr Sumit Sanghai, Head- Large Clients Group, ICICI Bank. Although more than 80% of residential transactions in India still take place in the top seven cities, the desire from tier II and III cities has also been very strong. This is mostly due to the development of digital architecture and infrastructure, which is fueling significant end-user demand, particularly for residential real estate. It is essential to have services that enable mass payments, digital collections, and other banking sectors that facilitate the efficient operation of the organisation in order to meet this demand.
ICICI Bank has introduced the real estate STACK, a groundbreaking programme built around the whole real estate ecosystem, with this in mind. It was established in order to meet the needs of all parties involved and to aid in the expansion of the industry as a whole.
The “ICICI STACK for Corporates” programme, which the Bank introduced last year to offer a set of customised banking solutions for corporations and their complete ecosystem, is expanded by “Real estate STack.” The Bank provides builders with the real estate STACK, which includes construction financing, regulatory services, inventory funding, and lease rental discounts (LRD).
Additionally, the STACK gives the stakeholders the ability to handle payment responsibilities with numerous stakeholders, including suppliers, workers, utility providers, and regulatory authorities.
The launch of STACK is a significant step towards digitalization and transparency for the real estate sector. It has the ability to transform finance in the real estate sector and might play a significant role in the sector’s expansion.
