Financial Technologies in Project Financing of Housing Construction

Abstract

The share participation of citizens’ financial funds in the construction of apartment buildings substantially ceases. In conditions of a gradual transition to project financing of housing construction, developers and banks face with the problem of the deficite of resources to finance all new buildings and the completion of projects. The project financing mechanism remains incompletely developed; only the basic principles of the project financing mechanism work are indicated. There is no regulatory legal framework, so it is difficult to evaluate these initiatives. The Russian banking system is not ready to fully provide loans at the request of housing developers, because it does not have sufficient financial resources. Banking products using escrow accounts are in the formation stage, which is of interest in considering other forms of financing of construction objects, in particular, using the crowdfunding technology, the possibilities and advantages of which are discussed in a scientific article. The technology of crowdfunding can be used by commercial banks by creating an Internet site for attracting public funds to implement a targeted project online. Previously, the bank’s task is to assess the reality, effectiveness and timing of the project in order to reduce risks. In the future, the bank collects online funds and their investment in the project.