FinTech startup PropCap readying an alternative for professional investors with Asia’s first AI-powered mortgage platform

HONG KONG SAR – Media OutReach – 18 August 2022 – PropCap Technologies Limited (PropCap), an award-winning FinTech startup incubated by Cyberport Hong Kong, today announced its strategic expansion plan into Japan, Australia and the Greater Bay Area (GBA) in China, which further strengthens its bridging function in the global real estate investment business for foreign real estate buyers (buyers) and mortgage financiers. The company is also actively promoting the role of mortgage financiers with a growing number of investors whose appetite for more diversified investment models is on the rise.

Founded in 2019 by a team of veterans from the investment banking, IT and legal industries, PropCap is the first cross-border mortgage platform in Asia.

In the UK, Japan and Australia, the traditionally popular destinations for property investment, PropCap is expanding the reach of mortgage financiers while helping overseas property buyers who face hurdles in mortgage applications.

The company enables easier and smarter global mortgages for buyers, while offering favorable investment options for professional investors (loan financiers verified by PropCap) seeking to diversify their portfolios with more stable and relatively higher returns at lower risk, enabled by AI-powered lending and analysis platform. The birth of PropCap fills the gap well against the backdrop of a slowing global economy and political turmoil, with investors eagerly navigating their way to best allocate funds for more stable returns with reduced risk.

Securities from mortgage financers

To date, PropCap has processed a total of 15 cross-border mortgage deals worth over USD 5 million for mortgage financiers and borrowers since March 2021, when PropCap’s product and technology innovation was officially finalized and introduced to the market. The average interest return for borrowers is 7.5% pa, and the average return period is 21 months.

A growing number of professional investors are beginning to look at this alternative investment tool to become mortgage financiers due to the relatively more stable state of the property market, lower threshold than direct property investment and higher return than renting. In addition, PropCap reduces risk for mortgage financiers with its security policy and strict compliance standards in multiple jurisdictions, as well as its innovative technology that offers transparent, know-your-customer (KYC) procedures and real-time property valuation. PropCap also works closely with an extensive overseas partner network to ensure first-hand local insight and smooth project delivery, ranging from law firms such as Healys LLP and Carter Lemon Camerons LLP, estate agencies such as CBRE, to letting agencies such as Complete RPI.

Future market expansion

Neo Cheung, Co-Founder and CEO of PropCap, shares his views on the company’s strategic expansion plan, “PropCap selects and targets operational markets geostrategically. We have built a solid foundation of mortgage financing solutions for borrowers investing in the UK and Japanese real estate markets. The latest strategic the expansion in Japan, development in local operations and initiation of exploration of mortgage markets in Australia and the Greater Bay Area mark the company’s mature and strengthened two-way business model that is poised to expand mortgage financiers’ investment options.”

Due to the current epidemic, China’s economic growth slowed down and investment returns decreased, which has influenced more Chinese investors to consider investing in foreign real estate. PropCap aims to fulfill mortgage needs and become the gateway of choice for Chinese overseas property buyers.

In April 2022, PropCap joined the Greater Bay Area Cross-border Data Mutual Recognition Platform, which is primarily powered by Nova Credit, a consumer credit agency that connects consumers and lenders with data and analytics. Participation in the platform enables PropCap to carry out more efficient and reliable KYC procedures towards clients in mainland China.

Leader in overseas property loans

Where PropCap specializes in – a niche model that bridges and connects mortgage financiers and buyers, there is no direct or similar player readily available for the solutions and services offered by this FinTech startup that was recently awarded “Top 100 of Jumpstarter 2022” by Alibaba Entrepreneurs Fund, the world’s largest start-up competition.

According to a recent paper issued by the Alternative Investment Management Association and PwC, the growth of private credit globally presents a significant opportunity for Hong Kong. Furthermore, the city’s proximity to mainland China and the increasing receptivity from both regulators and traditional investors are important stimuli to technological innovation for the private credit sector, which will significantly accelerate PropCap’s growth and global expansion.

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