Modern Technologies for Housing and Mortgage Market to be discussed at DOM.RF Session at SPIEF
On 25 May 2018, Technologies for Housing session in partnership with DOM.RF will take place on the margins of the St. Petersburg International Economic Forum.
How are technologies affecting the housing market? What will the mortgage service of the future look like for the consumer? Which online services in mortgage loans are set to replace the traditional ones? Is a full-fledged model for online mortgage lending without physical offices possible? How will the use of blockchain technology in mortgages affect the issuance of mortgage loans and their securitization? Are digital mortgages issued on Western markets, and what lessons can be learned from North American and Western European best practice? These and other questions will be discussed by the participants of DOM.RF session.
2017 saw a record number of mortgage loans totalling around RUB 2 trillion and over a million families taking another step on the housing ladder in Russia. Mortgage rates fell below 10%, and are expected to drop even further to 8% by the end of 2018. Mortgages are a key driver of demand for housing: every other new build sale and one in three secondary market sales are completed with the help of a mortgage. The current drop in rates means a reduction in bank margins, which calls for improvements in business efficiency. Players who are able to leverage user-friendly service and cutting-edge technologies to increase issuance rates will have the advantage. The example of developed markets shows that the market share has not increased so much for credit organizations as for companies actively involved with innovative technologies, such as PropTech and FinTech.
“In the Address to the Federal Assembly, President of Russia Vladimir Putin noted that currently we have a possibility to gradually reduce interest rates without accelerating the inflation, which will make mortgage credits more accessible. Among other things, the use of innovative technologies in credit financing can contribute to this process,” said Anton Kobyakov, Adviser to the President of the Russian Federation, Head of the Programme Committee of the SPIEF Organizing Committee.
“Russian economy is in transition to a new era – the era of low interest rates. Today the key business development factors are speed, user-friendly issuance and service of mortgage loans, simple purchase procedure. Together with government officials and representatives of developers and financial institutions, we will discuss how modern technologies affect housing purchase process and when housing related business processes can be transferred into online mode,” comments Alexander Plutnik, Chief Executive Officer of DOM.RF.