Fintech News

CRE Investment Firms Are About To Get Speciality Banking Services With Covercy

With the National Multifamily Housing Council (NMHC) Annual Meeting on January 18-20 in Orlando, members are actively preparing for the latest networking opportunities. Industry leaders will speak about new announcements, and they are expected to comment on the latest business tactics and strategies. 

Commercial real estate (CRE) features heavily in the programs and organizations at the NMHC, with the new unveilings that could potentially restructure and advance the field of CRE. One of the most widely discussed topics right now is the latest range of banking services to be launched by Covercy, which could change the way in which CRE Investment Firms operate. 

The Current State Of CRE Bank Accounts

People are used to technology aiding their work and improving overall flow. The exact opposite could be said for the typical way in which CRE investment firms manage their bank accounts. 

There is a disconnect between bank accounts and investment positions as they are being managed manually by investment firms.  The lack of an end-to-end system leads to distribution payments, capital calls, and reconciliations having to be done by hand. As a result, this slows things down significantly, creates more administration work, and increases the possibility of fraud, errors, and omissions.

Covercy’s Background And New System

Covercy has picked the NMHC Annual Meeting to showcase their new and improved CRE banking services. Focusing on commercial real estate (CRE) with an Investor Administration & Banking platform, Covercy has helped over 100 commercial real estate investment firms. 

Doron Cohen, CEO of Covercy, explained that “Typically CRE investment firms manually manage dozens of bank accounts and hundreds of investment positions,” He continued, “Each one is disconnected from the other. Manual distribution payments, manual capital calls, manual reconciliations. Manual everything. Our customers can now open bank accounts specifically crafted for the unique needs of CRE investment firms. Effectively eliminating manual efforts, our accounts feature automated distributions and in-platform payments, which are fully linked to their investor portal. And this is only the beginning of our roadmap!”

Covercy’s products are built on the foundation of their unique and innovative CRE Banking Core. With this system, functions such as one-click-distributions and online capital call processings are made possible. Clients can also have peace of mind knowing that they are protected from cybercrimes or omissions since Covercy is insured by Markel. 

Advantages Of The New Automated System 

With the new CRE banking services, customers can open bank accounts that target the specific needs of CRE investments. Accounts have integrated automated distributions and in-platform payments. All of this is seamlessly linked to the investor administration, creating a good sense of organization and flow. 

Federal Deposit Insurance Corporation (FDIC) insured bank accounts will be online, negating the need to use physical bank services. These bank accounts will be protected by law from specific threats such as bank failures, thefts, or omissions.  

CRE investment managers will also be able to utilize a smart auto-calculation service which will be able to determine specific distributions that need to go into respective investor accounts. After the calculation, the distribution can be done directly into each account– creating a quick and easy transfer system.  

Benefits Of Streamlining CRE Banking Functions

CRE banking functions are moving into the future thanks to this streamlined process. The stress of instructing bank transfers is no longer an issue. Exporting National Automated Clearing House Association (NACHA) files is a thing of the past, and there is no need to mail paper checks. 

Covercy has noted that while ease and simplicity are a considerable advantage, an element of safety and security is also introduced. Fraud can be significantly reduced with an online automated process. Bank transfer errors should significantly decrease since there is little to no room for manual error. This could become the benchmark for security concerning financial investment transactions. 

Additional Unveilings 

Covercy will also speak about their new investor portal alongside the CRE banking services. This portal will allow investors to log in and view how their assets are performing as well as access important information related to assets, tax forms, reports, and transaction history. The investor portal will act as a central hub, where information can be quickly and conveniently accessed. 

Final Thoughts 

The new CRE banking service alongside the investor portal is just the beginning of a new wave of innovations and techniques for commercial real estate. Covercy has mentioned that these announcements and unveilings will lead to more developments further down the road. CRE investments firms are about to enter brand new territory that will create many exciting new opportunities.

Adriaan Brits

Adriaan Brits is a multi-sector analyst and business consultant with notable commentary on the S&P500. He loves to evaluate fast-movers and to be ahead of the trend.

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Adriaan Brits

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