- The DDS platform is being used for the first time for Mortgages in Russia
- More applications such as purchases and sales coming soon
- The platform reduces the process time for transactions and increases security
The Decentralized Depository System has been used for the first time in Russia by Raiffeisenbank.
This new system has been heralded as more efficient than the traditional mortgage system as it reduces the typical time taken and since it is conducted using a blockchain platform, making it very secure.
The first transaction in the platform has already been carried out and according to Raiffeisenbank, it was a mortgage transaction.
According to Yuri Kirilchev, the Business Development Director of ITS Te-Teko, the platform works seamlessly as an add-on and works to carry out instructions given by a master computer owned by the bank.
“It implements the end-to-end business process between depositories of accounting and storage.” He said.
How it works
The platform begins to function once a form is filled by a customer for a mortgage, the platform verifies the identity of the customer via digital signature and also stores all uploaded documents and sends it on to bank officials who review them.
Once a decision is made, all relevant information is relayed back to the bank’s platform where it is successfully stored. This removes the need for manual relaying of information and thus, saves time for all involved.
“Using DDS will reduce the operating costs of depositories by almost 80% since all processes will be fully automated,” says Anna Zaitseva, General Director of DK Region
Beyond this, there is the added advantage that it creates a singular channel for the sending and receiving of mortgage information- one that is highly secure and traceable.
“The process of registering a transaction is greatly simplified, the time of its execution is reduced, the risks of lack of collateral are minimized, “said Mr. Popov, the head of the Information Technologies Directorate of Raiffeisenbank.
More coming soon
While this application of the platform to mortgages is impressive, it only just scratches the surface of what the bank intends to do with it.
For starters, they also plan to begin using the platform to conduct operations such as sales and purchases, which could be made faster and more secure as well.
As of now, only two banks intend to use the e-mortgage DDS platform. However, it is believed that the market for the platform is quite large and can be explored in the coming months and years.