Moneycatcha uses blockchain to streamline mortgage applications

MoneyCatcha is using blockchain technology to make home loan applications quicker and cheaper.

One of the most time consuming and costly processes banks go through is signing customers up to a mortgage. The full loan application process can take weeks and has a significant cost. Data is often captured and manually re-entered several times resulting in potential errors and a further waste of resources. As a highly competitive part of retail banking, and perhaps its most profitable activity, being able to differentiate from other banks is critical.

Also, with increased scrutiny on loan documents as we’ve seen through the Royal Commission on banking, the need to be able prove the sovereignty and accuracy of data captured on applications, and the ability to audit those documents is increasingly important.

This is where Moneycatcha comes into the picture. Their blockchain solution streamlines the loan process from origination right through to final sign-off.

Moneycatcha’s CTO, John Heaton, says Moneycatcha started by looking at loan origination.

“Loan origination is quite a complex problem. There’s multiple stakeholders. There’s very long time frames – on average it takes around 42 days from the time you apply for a loan until it’s settled. It a very complex value chain of things that have to go right within a period of time,” he said.

The problem is that while this is a major source of revenue for banks, it’s “fraught with manual processes”.

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Source: Moneycatcha uses blockchain to streamline mortgage applications | finder.com.au