While ideas behind blockchain may seem to be abstract, the introduction of this new technology will have real benefits for brokers and their clients, says one leading industry expert.
Simply put, blockchain is a way for different organisations or people to all agree on the same set of facts such as when a payment has been made or when someone purchases an asset,
CoreLogic executive general manager of technology, products and services Greg Dickason told
Australian Broker.
“Rather than one company owning the ‘ledger of truth’ like a bank owning the data in your bank account, everyone can agree without anyone having this ownership.”
This fact checking is done through a peer-to-peer network of computers, a system which may bring in new innovations within the property and finance sectors including for mortgage brokers, he said.
“Even something as simple as changing title ownership at the same time as paying for a property becomes possible as part of the same transaction.”
Currently, brokers have to coordinate multiple transactions at the same time, he said, including processes such as verifying identity and documents, verifying credit and capacity, ordering valuations, etc. These could all be considered as a single transaction through smart use of blockchain.
“This would eliminate a lot of the tedious paperwork and allow brokers to focus on customer service,” Dickason said. “It will also innovate how finance works and who is involved in providing and consuming finance.”
One challenge for brokers will be to stay informed and up-to-date with new trends in this area especially around business processes and operations, he added.
“Blockchain is just one of many technologies that require brokers to embrace learning and experimenting with new ways of doing business. Digital mortgage platforms, mobility and new lending and ownership models are others.”
Blockchain will be beneficial for brokers who stay informed and adapt while being disruptive to those who don’t, Dickason said.
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