Issues in Online distribution channel for home loans Part.II

Its conquest remains a challenge because it disrupts people's attitudes. The relative complexity of mortgage lending has ruled for a time of digital distribution. Banks still mostly stick to a limited use of the web channel as a simple contact tool prospect, with some simulation tools and online advice. Involved, many documents to provide, the importance of the intermediation of an adviser, the number of players entering the game (underwriters, notaries, ...), the risks of fraud, loss of opportunity for contact client and therefore cross-selling.

The lifting of legal constraints: a condition indispensable not for customer relationship management 100% remote

The law on the protection of the borrower and governing the loan offer and the terms for conclusion of the contract, still imposes a relationship postcard (postmarked authentic) between the client and the bank to the steps of sending the offer to the customer and acceptance by the latter. But it lacks little for a relationship 100% distance and electronic submission is possible until the funding request by the client.

Indeed, while the tools necessary to assemble the financing plan online (sophisticated simulators, engine stand for regulated loans, scoring tools for pre-agreement ...) are now available online, building a complete application for funding still faces barriers to taking legal recognition of electronic documents, and simply the fact that they are still uncommon. But dematerialization at source is a proof of evolution programmed, evidenced by the development of bills or bank statements electronic or upcoming launch of the NIEC (National Identity Card Electronics). Devices associated with electronic safes, these documents dematerialized at the source will forward copies of the disappearance, the latter often requiring agency passages, many manipulations and visual controls, with a controlled level of risk months.
Finally, we can assume that the law limiting Scrivener to date the complete dematerialization chain soften granting the benefit of such electronic signature, recognized for over ten years as having the same value as a handwritten signature.

Issues in Online distribution channel for home loans Part.I

How to make a prospect or client to be autonomous in the construction of its real estate financing plan? Or even how the economy of many supporting documents? These are a few issues of the dematerialization of the customer relationship applied to the distribution of credits by the web channel habitats.

The challenge worth noting, as the benefits are numerous web channel, for both the bank and the customer:

    * Reduce distribution costs by shifting by the user part of the inquiry process 
    * Limiting the use of physical network infrastructure
    * Provide faster response times, major differentiating the market

The benefits are plentiful, and are now well identified.

What are the issues and therefore the remaining barriers to be overcome to capture the opportunity that is developing the web channel for the distribution of housing finance products?

Online brokerage, through everyday banking and savings, operating the web channel for the distribution of financial products has greatly expanded. After the democratization of the device for consumer loans, it is logical to think that home loans will naturally follow the trend.

And since 42% of bank customers will use banking services online by 2013.  Further stress that in 2009, 17.9% of those who are under 30 years had a housing loan, cons about 9% in 1999. Familiar and major users of new Internet solutions, the 18-30 age segments are mature, ready for distribution of product through the web.
Banks must be careful and think about the development of this channel for the distribution of mortgages, especially since it is a technological showcase for a ticket and a relatively modest technology is now well controlled in nationalized banks. 

Cont.

Financing your business, Advice from a banker Part.III

Of course, in the professionalism comes experience, knowledge of an industry, a successful career ... The CV is very important.
Bringing complementary skills (technical and commercial, for example) Is of course a plus, as long as you get to know each members.


Work on your project, surround yourself with expert advice, know your industry, customer needs, competition ... Anyway, approach your project with professionalism and clarity: do not believe that your enthusiasm will sweep away all obstacles, do not underestimate the take time for a commercial launch (convince first customers, establish a sales network ...) and a working capital plan accordingly. It is better to delay a project to launch a project badly put together ...

If you can, test your project on a small scale before you start making significant investments. Be ambitious but humble ... Know your skills and shortcomings, others (partners, for example) may be able to fill ... ultimately, the market is always right.



Banks do not invest, they lend. ... To be repaid. It is clear that they prefer to lend to sectors where there is visibility: Sectors in the launch phase, where many companies appear mushroom that will not necessarily be the stage of maturity, are more cautious investors in capital. Banks lend more readily to areas under development or maturity, when the continuity of actors is more stabilized.

Financing your business, Advice from a banker Part.II

- What (s) benefit (s) to go through a bank rather than a business angel or venture capital? What are the main differences?
We must differentiate
- Venture capitalists, who are willing to take a significant risk, financially equivalent to the creator and without warranty, in exchange for a higher expected return, usually at a horizon of 5 years.
Their involvement provides funding needs difficult to finance by banks (research and development, for example), but reduces the profitability of the creator who shares the capital gain by his activity.

- The bank lenders, who accept lower profitability (margin on credit) in return for lower risk that reduced by guarantees.
The use of bank lenders allows you to play the leverage and improve the profitability of capital (return on capital exceeds cost of credit), but a start-up and very innovative can only marginally be financed with banks will have recourse to capital investors.


- How is evaluating a project started by a bank? What is the importance of training courses or the contractor in this assessment? Loan Entrepreneurship

ultimately, the decision to finance a business is about trust: the banker said: "I have confidence in the ability of that person to go through with his plan, I feel good." For the creator, inspiring trust is to first show his professionalism, he knows the area where it will start, he thought his project and was given the resources, including human and financial, to succeed, etc...

Financing your business, Advice from a banker Part.I

Jacques Dumartin, professional customer adviser in a large national bank has agreed to answer questions to explain the solutions offered by banks to support the launch of companies and provides advice to maximize his chances.


The creation of a company share a first idea, a desire of the designer who will have to formalize its project to study the market, competition, quantify the necessary investment (including working capital needs development), building a business plan, evaluate its ability to financial support, to finally see a need for external financing. For these steps prior to the presentation of a banking record, the creator may be assisted by the ICC, accountants, support networks for entrepreneurship ...

Once the project led to the financial plan (financial plan, forecast, plan cash), still have to find bank financing.
These can take various forms: medium-long term credit for financing investments, short-term loans for the period Customer (B to B, factoring is a solution to be studied). The SLA can sometimes use to finance the needs intangible costs (not to mention the launching of working capital) and to facilitate the credit agreement ...

loan business creation Once the project is considered valid, have good chances of success, which is the essential first step, comes the question "what happens if things do not go as contractor and the bank provide? . That's where the issue of guarantees.
The first guarantees obvious, is the guarantees on property financed: pledge of goodwill, equipment ...

These properties undergoing a discount during a possible cessation of activity, additional safeguards are necessary for the bank can expect to recoup the capital lent: OSEO counter-example.
The deposit, at least in part, the entrepreneur is one of those additional guarantees and is a sign of motivation (50% maximum capital if counter-SAH).