Smart Cities powered by Industrial Internet of Things (IIoT) innovation will change mortgage. Homes and buildings are changing from your usual home to something that is more connected. Likewise, mortgage is evolving from the usual pen and paper type of thing to a more digitized and perhaps blockchain-enabled.
Industrial Internet of Things (IIoT) and Smart Cities
California begins to roll out the mandatory solar power in homes just this May and it is a move not only to have a cleaner power source but a more towards the future. Industrial Internet of Things (IIoT) technologies form part of already growing smart cities and smart utilities, and across a range of industries.
Spending on smart city technology is expected to reach the $80 billion mark globally this year and around $135 billion by 2021. This demands that cities, as well as those, engage in the housing industry to prepare for tomorrow’s smart city needs. It will bring great changes in terms of home prices, lending processes and perhaps the way people decide how to buy a home.
Although for sure vintage homes will still be a major consideration, the integration of new technology into these existing homes might be crucial. When listing a home, it is not just important to know the current condition of the home but also if it has access to various technologies.
Digitization and Blockchain Technology
Digitization of the mortgage process is also a major move recently. The rise in apps which provides access to both mortgage loan originators and homebuyers to transact purely online is evident. Homebuyers prefer mortgage lenders which provides them not only with a fast process but also with easy online access.
Putting mortgage into the structure of blockchain technology is also in the works. Blockchain technology is seen as something that will provide greater security, faster mortgage process and secure retrieval of loan data. WIll everyone be keen to adopt this new technology or are most mortgage companies ready for such a change?
What do you think are the effects of smart cities to mortgage and to homebuyers? Share us your thoughts in the comment section below.