Harnessing technology to navigate South Africa's property market
‘Navigating the complexities of South Africa's property market requires a blend of innovative technology and market insights’, writes Myurie Naidoo, Principal of Property Finance, Sustainability, Reporting and Automation at Nedbank Corporate and Investment Banking (NCIB).
In the ever-changing landscape of South Africa's property market, 2024 presents challenges and opportunities. As the climate crisis escalates, the importance of financial institutions in fostering a sustainable future has reached a pivotal point.
As the country’s leading commercial property financier, Nedbank is fully aware of these responsibilities. The crucial question is: How does Nedbank use technology and data analytics in such a complex environment?
Understanding the climate geolocation tool
Physical risk to property assets due to climate change poses a considerable challenge. NCIB’s approach is its cClimate gGeolocation tool, an interactive map that is quickly becoming essential in property finance. This map isn’t just another digital tool; it pulls together data from various sources, giving a complete view of the bank's financed portfolio. At the core of its development was the need to understand properties that are more at risk of climate change due to their location.
Incorporating climate scenario overlays and property risk scores
Nedbank has taken a forward-thinking approach by integrating climate scenario overlays through these climate risk assessment tools. These overlays offer detailed insights into how specific climate events such as floods, wildfires, hail, and lightning could impact the bank’s mortgage portfolios. Each property is given a risk score based on its exposure to these events, allowing for a more nuanced understanding of potential risks.
This data-driven strategy goes beyond merely recognising risks; it enables Nedbank and its clients to address and reduce those risks proactively. By embedding these insights into strategic planning, Nedbank ensures that it remains at the forefront of sustainable property finance in South Africa, enabling the bank and its clients to navigate the challenges that a changing climate poses.
The tool’s functionality was extended to provide essential insights into client concentrations, sector trends and nodal development activity. For development projects, Nedbank partnered with OpenSpace to provide a value-added service to clients.