The adoption of blockchain technology by banks and mortgage lenders could see a sharp cut in fees according to a new report.
Analysts at Capgemini estimate that the industry would make savings if blockchain-based ‘smart contracts’ were adopted; using US and EU figures it says those savings could be as much as U$11 billion per year.
These contracts, already being developed by financial institutions, bring all parties in a contract together on a single platform, simplifying the process and cutting down on the number of forms required, saving time.
“This could translate to an average saving of between $480 and $960, or eleven to twenty-two percent on mortgage arrangement and account fees for consumers,” the report says.
Homeowners are also expected to see savings on insurance products if and when that industry adopts blockchain smart contracts.
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