By Segun Oke
The rapidly evolving world of exponential technologies is expanding the frontiers of models; birthing world of new, exciting opportunities, such that the today’s challenges become the gold mines from which creative minds carve new wealth and even new things and issues become so old so quickly and extracting virtually anything, except the spiritual, is now possible.
The Housing and mortgage industry is not left out. The ravaging effect of climate change and many other issues that borders how we build or leave seems to implode in our faces: but no new intriguing is the emerging oppoerunities that such challenges are creating in a world that would not stop innovating. Let’s imagine the following scenario:
24 year-old, internet savvy Temi, laments the difficulty in finding a property of her choice. She is is having white collar job and dreams of designing her own house and explore her power to make choices; of living on the beach, close to nature, hills and the game forest!
However, she is disappointed by the same old fashioned way of contacting some misheivous agent or estate manager.
While ruminating over the limited property and finance options available in the country, she remembered the invitation she recently received to download a home app by a new mortgage innovation firm in town.
Curiously, she downloaded the app and an array of dematerialized and democratized lands in different locations popped up as she completed a short form.
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With the help of the voice aid called “Simi.” In awe of the features of the app, she became enthused to see the properties relayed to her via Virtual Reality, as if she was right on the land. It was exhilarating, the trip that took place right there in her office to the beach. The hilltop, the grassland, the riverside; the golf course yet to be developed; the amusement park, the beautiful mall and cinema; and the old and upcoming GRA; it was all amazing!
Excitedly she clicked on the different coordinates on the mobile app to see the ongoing developments, significant features, and the distances. There they were. At a glance, she could see the price of the land, comparable lands, a brief history of the neighborhood; a check on legal issues or encumbrance, and availability of public infrastructures. And as a Millennial that she is, she wasted no time in sharing this with her group on social media. There were 1000 instants likes, generating immediate 200 willing buyers, as most viral digital marketing does, if effective.
She could design her house by herself and see how it looked. She is instantly offered affordable and competitive prices of the designs, and construction timing. She could choose from a range of brand available in the market: the new products launched by a startup to promote sustainable building, the basic to luxurious and see how each affected the pricing of the property.
She can also choose between a 3D printed house, smart home, or the traditional brick and mortar model. The scientific and health analysis of each house is also offered to her to help her choose a home that matches her sustainability quest!
The estate is equipped with waste recyclers; each household with two robot assistants- a virtual assistant that does everyday chores like switching on/off lights and home appliances; the other a physically visible robot that helps with loads, sweeping and other physical and repetitive tasks.
Temi further gets a list of over 20 pre-qualified and publicly-rated building professionals from where she could make a choice. Once she selects a project manager/building professional, a mortgage is approved. So she reviews and Okays the construction insurance purchased by the building professional.
Seeing all construction activities as relayed to her as live stream was simply awesome, thanks to the 360-degree camera on site. The prices and time to completion are predetermined, and she understands the stream of income from the sales of power from her solar panel and the projected value of the house in years to come. As Temi estimates when she and her family would not be available in the house for an extended period, she is provided an estimated income that could accrue to her if she leases out the property on such days to visitors, who also uses the app. But there is still something missing.
The government agency responsible for the development of infrastructures would not approve any development work until no less than 200 subscribers have signed up for the new site. The same goes for the shared-service firms, whose responsibilities are to provide satellite security surveillance and off-grid power for the houses.
Bearing this in mind, she checks the number of interest that her post had generated and she was surprised. Thanks to the power of viral marketing, more than 1000 people indicate interest and 480 pre-qualified. About 50 others put up their properties in other locations for an exchange on the Land Exchange Bureau of the mortgage firm. And here in her palm, is the market to trade her old furniture for new ones while she savours the delightful sight of matching options of the interior decorations online.
Good news! The icing on the cake: the push to grant tax holidays to taxpayers, who use their fund to develop infrastructures (where there are none or inadequate), has just been approved.
It is a new market for everyone: the old is gone; paving ways for the latest and unraveling new business models. The promoters of the firm offer a platform for a democratized collaboration of players within the housing industry. From the paint maker to the cement manufacturer, the nail and roofing sheet producers, the brickmaker, the housing research endeavors/institutes, the landowners, the geographical information system managers, insurance firms and tax agencies; these guys are entwined in the entire value chain, creating and unlocking possibilities and value for everyone in the ecosystem. This way, they can innovate collaboratively, gather and mine data, reduce cost and wastes, pre-empt and reduce market risk wholesomely, while lowering the interest rate and increasing ROCE. They are not the usual mortgage bank but a business platform, digital service, and innovation hub.
The undertakers are here. A new world is born: the burial of the old order started a long time (without notice), and the dirge has commenced. Indeed, the world is a changing celestial.
Whoever is reading this must know that the mortgage marketplace I have attempted to catalog or script here is not with us as we speak, but breathing down our neck. The future beckons on us to transform the undeniable obsolescence in almost all industries within the Nigerian society; presenting us opportunities for disruption. For how much longer shall we wait for the unenterprising, docile and archaic Federal Mortgage Bank of Nigeria to provide leadership and push for new frontiers?
The undertakers, equipped with the new media skills, are masterly skilled in human-centered design; They understand and effectively employ exponential technologies and have embedded a culture of corporate innovation and entrepreneurial performance management system their workplace.
A digital strategy hinged on a culture of rapid and continuous experimentation is key to their success, thus delivering an efficient and effective marketing and sales outcome.
Segun Oke, a Fellow chartered accountant and an alumnus of MIT Sloan’s wrote from Trium EMBA @ London School of Economics, NYU Stern School of Business, and HEC, Paris .segetonio@yahoo.co.uk, +2348037110870.
