Almaty, The Republic of Kazakhstan / March 10, 2022 / SEAPRWIRE / announces they have digitized mortgage loan by 90%. At the same time in leading countries such as Finland, South Korea, Sweden, USA the level of digitalization of mortgage products reaches just over 30%. In the UK, it is 55%.
The 2020 study examined 193 countries in terms of their level of e-government development (E-Government Development Index). This index consists of the arithmetic mean of three indicators: the breadth and quality of online services, the level of development of telecommunications infrastructure and the amount of human capital.
Denmark, South Korea, Estonia, Finland, Australia, Sweden, Great Britain, New Zealand, the United States and the Netherlands are at the top of the list of most digitized countries. Kazakhstan was ranked 29th, with first place among the CIS countries.
To understand the level of digitalization of the mortgage loan process, the top banks in the above countries were studied in terms of digitalization. The following mortgage origination steps were considered and tested: application – pre-approval – real estate valuing – decision – deal execution – signing of documents – registration of a pledge – disbursement in the moment – post-service. The analysis showed that the international examples used a hybrid scheme – where online processes are combined with offline ones.
In Kazakhstan’s , all stages are digitized except for the last one, when a meeting with a notary is required to sign the Purchase and Sale Agreement. This cannot be done remotely under the Law of the Republic of Kazakhstan. But even with the last step, mortgage processing takes a day. No paper documents are required – the system itself collects them from state databases, the real estate valuing is done online, the pledge is registered remotely, and an electronic digital signature can be issued in the process.
SOURCE: Bank Freedom Finance Kazakhstan JSC
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