OPTIMIZING BlockCHAIN FOR MORTGAGE
What is Blockchain?
Blockchain technology has disrupted the transactional marketplace by becoming the new foundation for digital currency. As a decentralized digital ledger, blockchain is the only public and verifiable system that allows for transparency without opening itself up to being corrupted. Blockchain is expected to grow to a $2.3 billion industry by 2021.
How Blockchain Disrupts the Mortgage Industry
In the current state of mortgage banking, over 70 percent of all costs are spent on re-assembling the data and documents in addition to manual data entry so that it’s easier for compliance to review. Often, this task is delegated off-shore to reduce labor costs, but this approach opens the process up to accuracy issues and still creates significant latency.
By having a reliable framework, most of the due diligence that normally would be tedious or restrictive is eliminated from highly regulated areas such as mortgage. Instead of relying on a third party to ensure the information in each packet is accurate, the blockchain creates that immediate trust by having an open source platform to ensure its validity and streamline the compliance process.
- Automate the due diligence process
- Significant reduction in time reviewing packets
- Cost savings through eliminating manual data entry
- Increased efficiencies through streamlined processes
- Ability to reuse extraction data and analysis from mortgage packets
How AI Helps this Disruption
Artificial intelligence can help make blockchain a more mainstream and reliable technology for businesses by automatically analyzing enormous quantities of documents, allowing businesses to spend more time on profit rather than paperwork. Using AI to perform due diligence through blockchain not only eliminates the time needed for document analysis, but also reduces costs from the process. Instead of investing a significant amount of money in legal resources, banks have more time to bid on a specific package of loans, giving mortgage brokers greater profitability.