Pretto explains the refusal of real estate loans thanks to AI

FinTech specialising in real estate loan brokerage Pretto has since creation, specialized in assisting individuals in the search for financing to carry out their real estate project. Its accompanying mechanism is therefore wide, integrating both the profession of broker and that of consulting around the purchase of real estate. But it is precisely on the advice side that Pretto chose to strengthen its offer today, by offering it a more technological dimension (thanks to AI) to address directly to individuals considered non-financial by market participants.

FACTS

• Pretto is now using the General AI to support individuals who have been denied funding for their real estate projects.

• FinTech has announced that it has put into production a feature based on a Mistral AI LLM to study and explain refusals.

• Its model should:
  • analyse refusals and identify, in particular, file blocking points,
  • vulgarise the record by simply explaining the causes of the refusal,
  • propose a concrete and personalized action plan to enable individuals to circumvent these barriers and access funding.

ISSUES

• Complete your offer : Pretto sought to dedramatize the real estate purchase with a deck of cards proposed for Christmas 2023. This playful and marketing initiative was to help him to make his brand known as well as to achieve his primary mission: to accompany individuals towards access to the real estate loan. More recently, it's with FinTech Yomoni, leader in online savings management, which Pretto has chosen to Associate to facilitate access to property for the French by helping them to better prepare their real estate project.

• Meeting a Growing Need : According to survey Opinion System commissioned notably by the French association of intermediaries in bancassurance in 2022, almost half of the applications for real estate loans (45%) were refused in France in 2022 because of the rate of wear and tear. According to more recent figures in the press, 17 to 20% of applications for real estate credit would be refused in France from now on. The main reasons include an excessive debt ratio, often exceeding the threshold recommended in 2023 according to the Professional Association of Credit Intermediaries (APIC). According to more recently highlighted by the Fédération Bancaire Française, the production of housing credits stood at 11.5 billion euros last May, marking a clear recovery trend after a low of 6.9 billion euros recorded in February 2024.

PERSPECTIVE

• In the face of tougher conditions for granting real estate loans and slower access to property, several actors are currently mobilizing to try to unlock the market.

• Pretto is now leaving his core business, linked to brokering, to enrich his support efforts. In France, it was also the Crédit Mutuel Alliance Federale that recently chose to give a Real Estate Loan, in particular to facilitate the journey of first-time applicants. This particular target is well served. BPCE has also chosen to mobilize through its Banque Populaire and Caisse d'Epargne entities, a financing solution for the exclusive use of first-time applicants under 36 years of age, and wishing to finance the purchase of their principal residence.

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