The introduction of CRR III and ongoing MiFID II requirements is raising the regulatory bar for banks, asset managers, and real estate professionals. While these rules add complexity—from stricter capital requirements to extensive documentation—they also open the door to modernising outdated processes through digitalisation.
fincite, a WealthTech company, recently delved into regulation in property valuation and wealth management.
CRR III, set to take effect in January 2025, establishes a new ‘Property Value’ definition for real estate lending. Unlike traditional market valuations, this must reflect conservative, long-term sustainable figures. Institutions can opt for either the loan value method based on the German BelWertV, or use adjusted market values validated with statistical controls. Both require precise data and robust documentation.
Classification changes under CRR III—IPRE, non-IPRE, and ADC—add further complexity. Misclassifications could result in risk weights of up to 150%, significantly impacting capital requirements. Meanwhile, MiFID II continues to demand a thorough investment advisory process, including suitability assessments, cost transparency, and detailed documentation—lengthening advisory sessions and increasing compliance burdens.
This is where digital tools come into play. fincite • cios offers a full-suite WealthTech platform that manages onboarding, advice, and reporting in a MiFID II-compliant manner. It reduces manual workload and improves efficiency, saving as much as 12 weeks per year for each advisor. Automated suitability checks and regulatory documentation help ensure accuracy and speed.
Enhancing this, PriceHubble provides real-time, EBA-compliant property valuations using AI and market data. Its integration with fincite • cios allows financial institutions to reflect conservative property values in portfolios, creating a more comprehensive picture of client wealth and enabling better asset allocation.
Dennis Ritter, lead private banking Germany at fincite, said, “The 360° aggregation of all customer assets, including real estate, represents another decisive advantage. Through integration with PriceHubble, property values can be assessed in real-time and incorporated into the overall asset consideration. This enables more precise asset allocation and opens up new advisory approaches that take into account the entire wealth spectrum of the clientele.”
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