Mortgage Lending with the Participation of the Construction Financing Fund of the Bank of the Future: A Literature Review
DOI:
https://doi.org/10.57125/FEL.2022.03.25.05Keywords:
Construction financing funds, Digital transformation, ESG criteria, Mortgage lending, Risk mitigation, Sustainability, Customer-centric bankingAbstract
In response to rising expectations for improved financial stability, productivity, and longevity in property development, the banking and real estate sectors have recently introduced a groundbreaking innovation: the incorporation of construction financing funds into mortgage lending plans. In the contexts of digital transformation, sustainability integration, and customer-centric banking practices, this study critically evaluates the role of construction financing funds in shaping the future of mortgage lending. A PRISMA-based systematic review of the literature from 2013 to 2021 was carried out using data from IEEE, Google Scholar, Scopus, and Web of Science. We have used search terms like "construction financing funds, "digital transformation," "sustainability," "Environmental, Social, and Governance (ESG) criteria," "mortgage lending," and "risk mitigation" to find the 50 peer-reviewed articles that were chosen. Key findings that came out of the thematic analysis include environmental, social, and governance (ESG) factors becoming more important in the management of construction financing funds. There is an important role of these funds in lowering risk and maintaining financial stability; and the growing use of digital tools such as blockchain and AI. A study that compares banks from different regions found that European banks value sustainability more than digital innovation, North American banks value digital innovation more than sustainability, and Asian markets value state-driven financial models more than sustainability. The results do bring up issues with harmonizing regulations and the right way to use digital technology, but they also show how important construction financing funds are for making sure that real estate development is safe and good for the environment. Because the financial world is always changing, these insights are very imperative for researchers, lawmakers, and banks that want to improve the way they lend mortgages.
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