Acre Software, a United Kingdom-based startup, announced that it has raised about $6.5 million to fund its blockchain based mortgage technology.
According to the release, this application will help with mortgages and insurance companies within the industry. This new platform uses blockchain technology to combine detailed consumer and property data. It also brings together all the components of the mortgage application process into one unchangeable “record of transactions.” The software is expected to put brokers back in control of their business while offering an easy and faster experience for consumers.
In addition, the platform seeks to eliminate corruption in the mortgage and insurance industries by harnessing the power of blockchain. By using blockchain technology, Acre has created a more secure environment for this industry. There will be a clear flow of records and faster settlement processes for customers.
Majority of Acre’s funding came from Sesame Bankhall Group (SBG) while the rest came from Aviva Ventures. SBG is an advisory firm based in the UK. It has over 10,000 advisors helping the company make about $4.5 million per year. This is not the first time SBG is involved with Acre. Reportedly, the two have an exclusive deal, the details of which were not disclosed.
While speaking on the matter Justus Brown, CEO and founder of Acre Software, said:
“Buying a house is one of the biggest financial transactions a person can make, yet the process is slow, opaque and fragmented, which is increasingly out of step with consumer expectations. We are changing this—leveling the playing field for brokers using innovative tech while putting an informed consumer at the center of the mortgage process. We are thrilled to have SBG’s distribution muscle and industry expertise, along with Aviva and SBG’s financial support at our disposal on this journey.”
John Cowan, SBG’s executive chairperson said:
“After undertaking a comprehensive 12-month review of the market, we concluded that we could no longer ignore the new competitive threats circling our profession and we had to act.”
The mortgage industry is slowly embracing blockchain and cryptocurrencies. Recently, Nexo, a crypto lending platform out of Switzerland, issued the first ever-crypto backed mortgage to Brock Pierce for a home in Amsterdam reportedly worth $1.2 million. The mortgage is backed entirely with Bitcoin Core (BTC).
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