Global asset management company Zventus initiated the creation of the “Blockchain Mortgage Lab” to develop new mortgage financial products and services.
Zventus, a California-based company with products and services spanning a wide range of activities including business consulting, HR strategy and technical support, has begun the creation of the Mortgage Blockchain Lab. As part of the project, the company and its partners will develop new mortgage financial products and services.
Deployed on Ethereum, Hyperledger and Corda platforms, Blockchain Mortgage Laboratories is a collaborative project of mortgage lending experts, technology partners and universities working on blockchain research and development.
“We have built a world-class team that understands financial services, has extensive mortgage lending experience and can leverage the power of blockchain to transform the industry,” said Angel Alban, President of Zventus.
The cycle of creating a mortgage application is highly fragmented, involving various government agencies, real estate agencies, financial and legal intermediaries. At the same time, the workflow is predominantly paper-based, processed manually and is prone to related errors.
The use of blockchain for mortgage lending can significantly reduce overhead costs, prevent fraud and increase the transparency of the transaction for its participants. Financial institutions will benefit from lower costs throughout the mortgage value chain and better communication with suppliers, agents and customers.
In addition, lending institutions will be able to improve the quality of service, as well as generate additional income by attracting customers who are open to new, high-tech products. They will be provided with a fast and transparent financial service at all stages.
Firms that will leverage the new technology will have access to efficient networks for the execution of financial transactions and shared ecosystems with their customers, partners, suppliers and regulators. It is expected that the blockchain mortgage and the creation of a real estate title registry based on it will significantly reduce the total transaction time along the entire chain.
Interest in blockchain-based mortgages is also being shown in Russia. In early 2018, the Russian Association of Cryptocurrencies and Blockchain (RACIB) created a working group for the development of digital mortgages. Among the tasks of the group is to simplify the paperwork when processing mortgage documents.
In May 2020, the Central Bank of Russia announced the launch of a digital mortgage using the state-certified Masterchain platform. As of August 2021, this project is still undergoing testing.
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