How is Blockchain Transforming Real Estate?

Blockchain has entered the real estate sector for good. Albeit slowly, the real estate sector that usually sticks to conventional practices is responding to the transformations of blockchain. If you are looking to leverage the commercial, strategic and technical benefits of blockchain for real estate, this blog can help. It introduces you to the transformative capabilities of blockchain in real estate.

Blockchain Transforming Real Estate

5 Ways Blockchain has Transformed Real Estate

From transforming the way buyers and sellers connect with each other to eliminating intermediaries, real estate can thank blockchain in many ways.

  1. Changing Marketplaces

Conventionally, listings and connecting buyers and sellers have remained the primary concern of the real estate sector. However, blockchain introduces novel ways to trade real estate. It can enable trading platforms and online markets to support real estate transactions in a better and more bankable manner.

One of the leading blockchain firms globally has developed a system that leverages blockchain to facilitate real estate transactions. It allows sellers to tokenize assets and liquidate online like trade exchange platforms. One can then collect the tokens and exchange them for fiat currency.

  1. Loan and Mortgage Securitization

Blockchain has many challenges to address here. Some include,

  • Inconsistencies across loan origination and underwriting processes
  • Strenuous efforts to prevent double-pledging of assets
  • Use of obsolete data to make trading and asset servicing decisions
  • Absence of real-time settlement that cause settlement delays

Blockchain offers banks and financial institutions a single version of verified information, immutable transaction monitoring, real-time payment settlements, and secure data sharing. You can also digitize a loan or mortgage and program it to include relevant data like ownership rights and loan payment history.

Blockchain also introduces smart contracts that can help collect and distribute payments to beneficiary holders. It can also send real-time reports to regulators. Holistically, blockchain manages the entire lifecycle. It fosters more credibility within secondary markets by offering investors proof of asset performance.

  1. Elimination of Intermediaries

This one may hurt brokers and realtors a bit. But that’s part of technological disruption! According to an industry report, blockchain will soon foster a shift in the roles and participation of brokers, lawyers, and banks in the real estate sector.

New platforms can take up managing listings, payments, and legal documentation. Intermediaries who charge a substantial commission to facilitate transactions will be eliminated. It will help sellers get more from their sales, as they won’t have to pay realtors a certain percentage as commission.

  1. Impact Investor and Tenant Identity

Blockchain-based tenant and investor identities can help streamline many factors. Mutualized blockchain-based KYC/AML procedures can streamline background checks, reduce costs, and increase security. Real estate involves many formalities and complex compliance to fulfill. Accordingly, decentralized identities enable anyone to prove ownership of properties while making essential documents (proof of insurance, identity, credit history) easily shareable with necessary parties.

Blockchain offers innovative solutions that include improved safety of purchase, automation of property management, increase efficiency, smart decision making, and lower costs.

  1. Urban Planning

Blockchain is revolutionizing real estate when it comes to urban development. Property development is something that the local authorities and the government decide on their own. The community for which they develop these properties often remains uninvolved in the entire planning and feedback process.

As a result, in many cases, they live with what’s planned and developed rather than what they really need. But blockchain can change the picture.

Blockchain-based planning platforms can involve token-based participation incentives, educational resources, and a feedback loop. It can stimulate community participation and involve local communities in urban planning development. The result is increased public confidence and satisfaction when the projects are implemented as per public needs.

Get Real Estate Blockchain Solutions with Qodequay Technologies

Qodequay Technologies is a comprehensive blockchain expert with exceptional blockchain development capabilities and extensive experience.

The company develops custom, secure, efficient, and scalable blockchain solutions for various sectors. Qodequay’s blockchain solutions augment business efficiency, enhance transparency, automate and accelerate many processes and explore new business opportunities with tailored blockchain solutions.

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Applications of AR/VR in the Banking Sector

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The BFSI sector is among the quickest respondents when it comes to technology adoption. From electronic transactions to mobile app banking, the BFSI sector has always kept evolving, making banking, financial transactions, investments, etc., even more straightforward and tech-based for its customers.

What next, now? The banking sector is geared up to embrace the next tech revolution. And that’s AR/VR! They have been a boon to the future of banking Industry with immersive customer experiences leading to higher user engagement, seamless banking solutions and quicker expansion. This is evident from the many existing and potential applications of Augmented Reality and Virtual Reality. Let’s look at some.

7 Applications of AR/VR in the Banking Sector

From the inception of virtual branches to VR-based payments, AR/VR has a massive potential to revolutionize the banking and finance sector, which is steadily upgrading to AR/VR.

  1. Virtual Trading

Mobile applications have simplified online trading significantly. However, IT service providers are leveraging virtual reality in their wealth management software. One of the examples includes VR workstations for trading. Additionally, 2D and 3D banking experience is adding to the bank’s existing process and enhancing it further. Besides, enhanced banking algorithms would have their upcoming elements embed VR to the bank’s wealth management software to enhance the banking experience.

  1. VR-Based Payments

With new adjacent technologies coming into mainstream, financial institutions will have to continuously evolve. Imagine purchasing something without leaving the virtual world? It might seem a bit unusual right now, but that’s possible. A global credit card leader has collaborated with a VR company to facilitate payments without requiring users to leave the virtual environment. Another example is that of virtual world games where players can buy apparels and accessories from within the virtual environment.

  1. Customer Assistance

In addition to Google’s help where users find ATMs and banks near them, banks are offering a seamless experience to their customers by integrating AR in their apps to help locate banks. These apps can help users scan the area with their phones and get real-time insights about the services available at nearby banks, their location, distance, etc.

  1. Virtual Branches

Digital banking and mobile banking are every customer’s first choice. With fading physical banks near our localities, we are about to enter the revolutionary digital world of virtual banks. Here, customers unable to visit the bank physically will be able to avail banking services virtually. Customers can use a VR headset to enter the banking metaverse to see a real bank. Banking Metaverse will be able to create uninterrupted experience of helping customers avail all physical banking facilities more cost effectively.

  1. Reduced Documentation

Even today, banking requires a lot of documentation. However, the introduction of AR/VR tools will help minimize documentation, as all the documents can be accessed virtually. It will help expedite and make loan processing a more seamless experience.

  1. Customer Retention and Acquisition

For 21st-century banking customers, especially millennials, banking is about technology. However, these are also users who rely on multiple banks and applications. Banks will be able to thrive in the competitive environment only if they embrace the latest tools and technologies. If AR/VR is the need, so be it! AR/VR offerings of banks will help them retain the existing customer base and acquire new ones.

  1. Increased Transactional Security

AR/VR-based banking can make financial transactions even more secure with systems like voice recognition, biometric security, face recognition, retinal scans, etc. These authorizations will help prevent unauthorized access by bad actors who continuously look for vulnerabilities to enter a system.

Embrace AR/VR with Your Partner Company

AR/VR in banking is yet in its nascent stages. However, considering its potential to prove technically, commercial, and strategically beneficial, a more accelerated adoption can help the banking sector grow at an even higher pace. Qodequay Technologies works as your techno-strategic partner in adopting, leveraging, and optimizing AR/VR. We help the banking sector enhance user experiences and compete better at the local and global scale, fostering higher customer loyalty and quicker expansions.

We partner and consult banks to create their AR/VR strategy and plan their digital transformation roadmap. Our digital transformation strategies are crafted through unique design thinking approach. Write to us at contact@qodequay.com to craft your digital transformation journey.

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