Moody recently published a new study on Blockchain technologies being able to help cutting costs and redundancies in the mortgage processes. The research touched the sector of the US housing and made important conclusions on the possible opportunities the new technologies may have for the industry.
According to the firm, one of the most untouched sectors out there is housing, which requires more investments towards eliminating redundancies and reducing costs. As concluded by the study, Blockchain technologies have a great potential in contributing to these objectives.
The key outcomes of the research were summarized by the authors giving important information about the opportunities of Blockchain technologies in the sector. The results included the following key points:
Blockchain technology can improve the process of loan performance monitoring. This not only help saving important resources but will also make the entire process transparent and safe. And all this will be possible to achieve in a cost-effective basis.
Due to the great opportunity of cutting costs on personnel and commissions that Blockchain technologies are able to provide, it was estimated that annual savings on such costs (up to 20%) can result measurable annual savings from $840 million to $1.7 billion.
At the same time the authors of the report expressed some concerns regarding important limitations of the technology. The key limitation of Blockchain technology as of today is the small amount of data that can be processed at a given time through nowadays existing networks.
Eventually, as concluded by the report, it can be quite unlikely that even the most popular cryptocurrencies currently in the market are adopted in the nearest future. The reason for this are stated to be not only the issues concerning the scalability of the new technology but also the regulatory concerns that may occur while adopting the system.