The evolution of the bridging finance market and the role of technology

Traditionally, bridging finance was seen as a niche solution for property investors and developers, providing short-term funding to bridge transactional gaps.

However, as demand for fast and flexible lending solutions has grown, so too has the sophistication of bridging products and the processes that support them.

A common misconception in the intermediary market is that technology cannot effectively support bridging finance due to its bespoke and often complex nature, which demands a hands-on, relationship-driven approach that technology struggles to replicate.

There is no doubt that bridging finance will always rely on strong relationships, expertise, tailored advice, and a deep understanding of individual product nuances, policies, and underwriting criteria which are often unique to each lender.

However, implementing the right customer relationship management (CRM) system can significantly enhance the efficiency and transparency of even the most complex bridging transactions. As I’m sure our friends at Brightstar can attest…..

Kit Thompson, director of bridging and project lead for Launchpad at Brightstar added: “We saw the obvious benefit to our business in terms of streamlining our entire back-office process to a market-leading CRM system, such as OMS.

“By bringing together all of the various stake-holders involved in the application process from introducing broker, customer, lender, surveyor solicitor etc, with visibility and transparency, our processes and completions have got slicker and faster.

“This generates more sales opportunities and income.”

A robust CRM system can be particularly beneficial in cases where a deal falls through with the original lender and quickly needs to be switched to a new lender.

Given the time-sensitive nature of bridging finance, the ability to seamlessly transfer case data and maintain a clear record of interactions ensures minimal disruption to the borrower.

Instead of starting from scratch, brokers can manage lender transitions efficiently, reducing delays and improving client experience.

Furthermore, technology can streamline the management of fees. A well-integrated CRM system allows brokers to charge fees directly from within the system, ensuring an accurate and auditable trail of fees collected per case or client.

This not only enhances compliance and transparency but also ensures brokers maintain a structured and well-documented financial record, reducing administrative burdens.

One area that could further enhance the bridging sector’s use of technology is the development of more sophisticated APIs (application programming interfaces).

These would enable brokers to submit enquiries and cases directly from their CRM into a lender’s system, reducing manual data entry and expediting decision-making.

By integrating broker and lender platforms, the entire process could become more seamless, allowing faster responses and reducing friction in case management.

As bridging finance continues to grow and attract a broader range of borrowers, embracing technology will be key to improving efficiency, transparency, and scalability.

While bridging cases will always require an element of bespoke structuring, the right technological tools can enhance the process, ensuring brokers and lenders can operate more effectively in an increasingly competitive landscape.