How is the digitalization of mortgages in Russia

2023

State Key to a new apartment: DomClick held the first online deal without visiting the bank's office

On December 14, 2023, Sberbank announced the integration of its DomClick real estate platform for search and sale with the State Key service, thanks to which users were able to buy apartments from developers on a mortgage completely remotely - without visiting the banking branch. Such online deals have already begun to take place. Read more here.

How is the digitalization of mortgages in Russia

In June 2023, the FinTech Association published a study of the level of digitalization of mortgage lending and insurance processes in Russia for 2022.

Digital mortgages involve the passage of a full cycle of mortgage lending without face-to-face visits to bank offices by customers, including remote collection of information about solvency, acquired real estate, refinanced credit and real estate assessment, as well as a remote insurance procedure and registration of a transaction in Rosreestr.

According to experts from the FinTech association, the level of digitalization of mortgage lending to market participants by the end of 2022 can be assessed as insufficiently digital or requiring improvement at the level of individual processes or directions. Among the survey participants, an insufficiently high level of sales of mortgage products through digital channels was identified - an average of 31%. At the same time, the level of loyalty (NPS) "through the eyes of customers" amounted to about 37%. Clients are least satisfied with the convenience of interaction with banks at the stage of supporting loans already issued, the authors of the report emphasize.

Experts noted a low level of integration of digital mortgage services with government services, which is associated with technological barriers and the lack of standardization of data exchange between participants and a low level of trust in technologies on the part of customers (in particular, the Unified Biometric System).

Another issue mentioned in the report is the lack of an end-to-end "digital mortgage" process. In 49% of participants, the average speed of issuing a mortgage loan (T2S) exceeds 20 days. Lead times for new products and improvements (T2M) also have the potential to shorten.

In addition, the researchers drew attention to the increase in the activity of using open APIs when exchanging data with partners against the background of the lack of a standardized approach for such interaction. More than 90% of market participants implemented partner APIs, but despite this, document flow with partners within the framework of mortgage lending is still carried out mainly by e-mail. The study showed that standardized data exchange between banks and participants in the mortgage process through Open APIs is carried out with only 6.2% of partners involved in issuance processes, insurance and product maintenance. At the same time, according to the association's estimates, the implementation of standardized APIs will optimize more than 40% of the client path.

The most "progressive" from the point of view of digitalization of mortgage lending and insurance was the direction of "Technology": banks and insurance companies actively use complex technological solutions to get rid of manual operations, reduce the cost and increase the speed of processes. Most participants have already implemented technologies for optimizing support and support processes: 83% of credit institutions surveyed use process robotization (RPA), 72% - optical document recognition (OCR), 69% - text chat bots, 62% - predictive analytics and machine learning.

According to analysts, banks with a larger share of retail products have a higher interest rate of attraction directly through digital channels. The average attraction rate through digital channels was 67.5%. Among market leaders, for whom mortgage lending is an anchor product, the percentage of attracting customers through digital channels is significantly lower and does not exceed 7%, since a significant share in their model of attracting new customers is played by the purchase of portfolios from other players.

Study of the level of digitalization of products, services and the client path using the example of the Digital Mortgage product

2021

Approving national blockchain platform as basis of digital mortgage experiment

Government approved the use the Russian blockchain "Masterchain" data of a platform for exchange during a digital experiment. to mortgage The resolution was published signed by the Chairman of the Government. Mikhail Mishustin This was announced on September 6, 2021 by the TAdviser company "."Distributed Registry Systems

Experiment on digital mortgage in Russia will be carried out on the basis of the national blockchain platform

Masterchain will be used to exchange information between depositories for the accounting and storage of electronic mortgages and Rosreestr. The experiment is carried out in order to transfer mortgage mortgages from paper to electronic form.

The use of distributed registry (blockchain) technology ensures the security of data storage. As of September 2021, Masterchain is the only blockchain platform in Russia that has been certified for the use of domestic cryptographic information protection tools. The system for accounting for electronic mortgages at Masterchain has been operating since 2019.

The operator of the Masterchain platform is the Distributed Registry Systems company. The experiment should begin no later than December 1, 2021 and will last until October 1, 2022.

This project is an important stage in the development of the digital space using the technology of distributed registers in Russia. The Masterchain platform is used by the bank in the implementation of various projects. The FinTech Association is working to expand the functionality of the platform and expects a significant increase in the number of its participants, noted Chairman of the Board of Directors of Distributed Register Systems Vadim Kulik.

The transfer of paper mortgages to electronic form will significantly speed up their registration and registration of mortgages. This is one example where technology makes our lives better and saves time. It is especially important that, thanks to the use of blockchain, data is reliably protected, commented on the general director of "Distributed Register Systems" Tatyana Zharkova.

In the FinTech Association, Sber initiated the creation of a System for recording electronic mortgages at Masterchain - the Decentralized Depository System and plans to take part in the experiment, said Director of the Sberbank Depository SberbankaYuriy Dubin.

"Дом.РФ" as a development institute sets itself the task of increasing the availability of home purchases for Russians, including by transferring the issuance of mortgages to electronic form. The decree of the Government of the Russian Federation will allow us to accelerate the introduction of online technologies in the financial sector. At the first stage, we will work out the technology of interaction between Rosreestr and depositories, as well as simplify the process of obtaining electronic mortgages. In the future, this will reduce the operating costs of creditors and simplify the issue of mortgage securities, which will reduce mortgage rates for borrowers, added Дом.РФ managing director Nikolai Kozak.

Rosreestr is ready to implement the experiment. It is important for us to improve the quality of public services for our customers. The department is already conducting a lot of teamwork in the field of digitalization of mortgages together with Дом.РФ JSC, the Ministry of Digital Development, credit organizations. The implementation of the experiment will increase the speed of processing electronic mortgages, reduce the time for registering mortgage transactions and, in general, make electronic mortgages more accessible to the citizens of our country, noted the deputy head of Rosreestr Elena Martynova.

The timing of the launch of a pilot project for conducting mortgage transactions in digital format

On April 1, 2021, it became known about the timing of the launch of a digital mortgage in Russia on the basis of the national blockchain platform Masterchain. The project involves electronic registration of mortgages in Rosreestr and the transfer of electronic mortgages to the depository.

According to the press service of the Association of Banks of Russia, citing Olga Shaimordanova, director of the Дом.РФ mortgage market development unit, by early April 2021, the process of preparing the necessary regulatory changes is underway. A pilot project for conducting mortgage transactions in digital format is planned to be launched in May. He was supported by Sberbank, Gazprombank, Дом.РФ, as well as a number of creditors working with Region.

The launch of a pilot project for conducting mortgage transactions in digital format is scheduled for May 2021

Shaimordanova noted that the goal of the project is to increase the number of electronic mortgages issued by banks by improving the business process for their release and maintenance.

Earlier in 2021, First Deputy Chairman of the Board of the Bank of Russia Olga Skorobogatova said that the regulator, together with market participants, is considering the possibility of launching a digital mortgage using distributed register technology. In her opinion, this project will be in demand on the market, since it will make the processes "seamless," as well as abandon "routine old technological solutions."

Associate Professor of the Department of Political Economy, Faculty of Economics, Moscow State University, Maxim Chirkov, in a conversation with Tsargrad, expressed the opinion that digital mortgages will lead to an increase in the debt burden of the population.

And banks are trying to find those customers who may still fit the current criteria, under their risk criteria, but who do not carry out the transaction because they personally do not want to do this. Someone is afraid of viruses, someone wants to move to another region and he works, and he is simply deprived of the opportunity to buy an apartment in another region on a mortgage, since it is really difficult, it is necessary to travel, "he said.[1][2]expert

2020: Preparations for digital mortgage launch on national blockchain platform

On May 28, 2020, the First Deputy Chairman of the Central Bank of the Russian Federation Skorobogatova announced that the regulator was working on the launch of a digital mortgage based on the national blockchain platform Masterchain. The Bank of Russia sent the relevant proposals for this project to the government and Rosreestr.

According to Skorobogatova, 9 banks in Russia, one special depository and Rosreestr are working on electronic mortgages through Masterchain.

The Central Bank of the Russian Federation announced the launch of a digital mortgage on the national blockchain platform

In principle, electronic mortgages on a distributed register are the basis for launching a digital mortgage further. And what we have now given as a proposal directly to the government and Rosreestr is to finalize the process so that the full cycle of digital mortgage operations is implemented at the    Masterchain, she said at an online meeting of the working group on the annual report of the Central MasterChain.

According to the regulator, Masterchain, as a tool for interaction between financial market participants based on distributed register technology, allows you to quickly confirm the relevance of data about a client or transaction, as well as quickly create various financial services, thanks to which financial market participants will be able to provide customers with fundamentally new services and products. In addition, Masterchain allows you to speed up the exchange of information between counterparties and provide the necessary level of trust in financial transactions, according to the Central Bank.

The Central Bank does not name the timing of the launch of the blockchain project of digital mortgages in Russia by May 28, 2020. He also does not disclose the details of this initiative.^[3]

In April 2020, Rostec prepared a roadmap for the development of blockchain in Russia for the government. The document is supposed to spend 36 billion rubles until 2024 on the development of such technologies, including Masterchain.

See also

• Mortgage in Russia

Notes