As the regulatory landscape tightens under CRR III and MiFID II, professionals in wealth and property management are under increasing pressure. New frameworks have introduced tougher documentation standards, more stringent capital requirements, and a demand for full transparency across financial processes.
Yet, amid this complexity lies a clear opportunity—firms that adopt the right digital tools can not only achieve compliance but also unlock new efficiencies and competitive advantages.
fincite, a WealthTech company, recently delved into regulation in property valuation and wealth management.
CRR III introduces two primary approaches for property valuation. The first is the loan value method, aligned with the German BelWertV regulation, which estimates long-term realisable value. This is ideal for banks needing rigorous documentation.
Alternatively, firms can apply the market value approach, but only if they can statistically adjust for long-term sustainability—adding complexity, but also flexibility, when backed by robust data.
The regulation also introduces sharper categorisations for real estate exposures—IPRE, non-IPRE, and ADC—each with significant implications for capital requirements. Misclassification could result in risk weights as high as 150%, underscoring the need for precision and automation in reporting.
In the investment space, MiFID II significantly extends the compliance scope. Advisors are now required to conduct detailed suitability assessments, offer cost transparency, and justify product selections. This leads to longer advisory sessions and more paperwork—unless digital tools step in.
Platforms like fincite • cios streamline this burden with an all-in-one solution covering onboarding through to reporting. The software automates documentation, delivers suitability statements, and integrates regulatory checks throughout, saving up to 12 weeks per advisor annually.
Complementing this, PriceHubble enhances the value proposition through AI-powered property valuation. With access to live market data and EBA-compliant assessment models, PriceHubble enables advisors to integrate conservative property values directly into portfolio analyses. This allows for a more holistic view of client wealth and supports better asset allocation decisions, deepening the quality of advice.
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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