The United States is experiencing one of the most prolonged economic growth cycles on record. This cycle has led to an expansion of the commercial construction industry with growth expected through 2020. However, in addition to the “what goes up must come down” history of recessions, signs of a potential downturn are peeking their heads up from behind the cinder block. We’re beginning to see subtle signs of a slowdown, like the upward inching of interest rates and inflation, and not so subtle signs, like skyrocketing costs for materials and trade wars.
Curious to see what machine learning in banking looks like for construction lenders and borrowers? We were too, so we built technology that combines AI and machine learning to change the face of construction loan management forever.
By connecting the dots between budgets, invoices, and lien releases, Contract Simply can help predict future issues and confirm everything is on track in minutes instead of days.
Seeing is believing! Check out the video below and afterward we'll set up a time to show you how it works with your draw documents.
General Contractors are familiar with the risks associated with liens. More often than not, subcontractors file them to ensure payment for invoiced work. It's a regular part of doing business, but liens are a costly and potentially time-consuming risk for builders and lenders
One of the hottest trends right now is machine learning in banking. The eye-opening implications technological advances like machine learning have on construction loan administration and process automation are now reaching the surface. Many of us experience the outcomes of machine learning every day. For example, Netflix and Amazon use algorithms to give us a movie or shopping recommendation based on our prior behaviors. CitiBank utilizes machine learning to evaluate “big data” to prevent fraud and monitor potential threats to customers. Even the United States Postal Service performs character recognition of handwritten characters using an algorithm and a computer vision system behind it.
Although post-closing management of construction loans is an area ripe for game-changing process improvement, it has been largely underserved by technology. There are many variables in construction loan administration including draw processing, review of AIA G702 and AIA G703 forms, borrower to contractor payment and lien release processing, and a million other details. Much of the work is done manually and it's a lot for both construction loan administrators and borrowers to juggle. Enter FinTech and construction loan software for commercial lenders and real estate developers.