ICICI Bank announced the launch of a STACK for companies in real estate sector to offer solutions to their banking requirements on one platform. The STACK, which is a combination of digital and phygital solutions, enables participants of the real estate sector namely builders, Real Estate Investment Trusts (REITs), and Alternate Investment Funds (AIFs) to undertake banking transactions expeditiously. This initiative is an extension of the ‘ICICI STACK for Corporates’ which the Bank launched last year to provide a customised set of banking solutions for corporates and their entire ecosystem.
The first-of-its-kind initiative offers builders, banking solutions such as the digital opening of bank accounts, instant generation of account numbers for RERA registration, construction finance, inventory funding, and lease rental discounting to cater to their financial needs, depending on the life cycle stage of a project. In addition, it enables them to manage their payment obligations to vendors, employees, utility providers, and statutory payments efficiently.
The STACK also provides REITs and AIFs with services for digital collection, reconciliation, surplus distribution, and custodial services. REITs are trusts that manage high-quality real estate property portfolios, collect rent through lease income and distribute the surplus to the investors. AIFs invest privately pooled funds in various asset classes including the real estate sector. Both REITs and AIFs require robust collection, reconciliation, and surplus distribution services digitally.
Speaking on the launch, Anup Bagchi, Executive Director, of ICICI Bank said, “The real estate sector is the second largest employment generator in our country and is also one of the fastest growing sector in the economy. The sector’s contribution to GDP is likely to go up to 13% by 2025 from 7% now. The main participants in the real estate sector like builders, REITs, and AIFs are poised to play a significant role in this expansion. Therefore, they require a banking partner which will serve their needs as well as provide solutions for their entire ecosystem.”
Our research shows that this segment requires the availability of finance, solutions for the digital collection, and bulk payment options throughout their lifecycle – from construction to leasing and selling the property-- as well as services for their customers, employees, and vendors. Armed with these insights, we are delighted to introduce a one-stop shop for companies in the real estate sector. This will enable them to carry out their business more efficiently.”
The key offerings of the STACK for companies in real estate sector: Digital bank account opening: Various types of loans. Digital collection solutions. Payment solutions. Customised mortgage loans for buyers. Digital solutions for FDI and foreign exchange. Services for REITs and AIFs.