This innovative startup has successfully merged real estate and financial technology to create a groundbreaking platform that redefines home ownership. Their portfolio project introduces a unique co-ownership model, offering tenants the opportunity to build equity into their leases.
As the startup experienced rapid growth, they encountered a significant challenge - as the ledger ownership and the invoicing were managed in separate systems of record (oftentimes unstructured). In turn, this led to regulatory reporting issues, customer dissatisfaction and the inability to scale the business.
The target state required a reliable analytical foundation between operational billing, ownership ledger records, listing valuation inputs and reporting outputs.
flowchart LR
billing[Billing records] --> model[Foundational ownership model]
ledger[Ownership ledger] --> model
valuations[Market value provider data] --> model
model --> reconciliations[Reconciliation checks]
reconciliations --> adjustments[Equity adjustment postings]
model --> reporting[Regulatory and business reporting]
The key architectural decision was to model ownership, billing and valuation as separate inputs that converge in a governed reconciliation layer. A report-by-report fix was dismissed because it would have hidden the inconsistency instead of resolving it. A purely operational-system change was also not the right first move because the client needed a data foundation that could quantify gaps before upstream process changes were designed.
We helped the client establish the foundational data model, define the reconciliation logic and identify gaps in equity ownership accounting. The model connected billing information, ownership ledger state and market valuation inputs so the team could reason about customer balances and equity positions consistently.
We managed to help the client establish a foundational data model, on top of which we were first able to run a set of reconciliations. Alongside listing valuations provided by market value providers, this allows us to identify gaps in equity ownership accounting and to fill them by generating equity adjustment postings. This not only addressed the ongoing reporting issues, but it also unlocked product development initiatives and future growth.