How transaction banking is transforming real estate

financialexpress.com:

Transaction banking, also known as transactional banking, is a comprehensive suite of services offered by financial institutions to streamline business transactions and cash flow management. These services broadly fall under three verticals — security, cash handling, and international trade.

For real estate companies within a country, the first two categories are particularly important. Real estate is a cash-intensive industry, requiring a smooth cash flow to function effectively. Since real estate projects are often lengthy, funds can become tied up, potentially stalling other ventures.

In addition, managing complex real estate transactions involving multiple parties can be a time-consuming and error-prone process. This is where transaction banking steps in, offering a set of tools designed to enhance operational efficiency and boost profitability for real estate businesses.

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* Automated payments and collections: Transaction banking automates tasks like rent collection, tenant utility payments, and various fees. This eliminates manual work, reduces errors, and frees up staff for more strategic activities.

* Escrow services: Secure escrow accounts hold deposits and other funds throughout a transaction, ensuring transparency and reducing the risk of mishandling. Funds are safeguarded in a secure account with customisable terms and swift execution.

* Financial dashboard: Transaction banking platforms provide a centralised view of all financial activity, allowing real estate companies to easily track income, expenses, and property performance. This comprehensive dashboard empowers businesses to make informed decisions and plan for the future based on a clear and