British Startup Raises $6.5 Million to Bring Blockchain Technology to Mortgage Industry

British Startup Raises $6.5 Million to Bring Blockchain Technology to Mortgage Industry

 

Acre Software, a UK-based tech startup, announced it has successfully completed a $6.5 million venture financing round. It plans to apply the latest blockchain technology to the mortgage industry, while the specific focus of their product is the financial advisers who, according to the company, facilitate nearly three-quarters of UK mortgages.

The software attracted the participation of Aviva Ventures, a venture capital firm owned by insurance giant Aviva, a company that invests in digital and new technology businesses. Sesame Bankhall Group (SBG), a support services provider for financial advisers, also took part in the venture round while the official statement also notes that SBG “closed an exclusive deal with the startup”.

“After undertaking a comprehensive 12-month review of the market, we concluded that we could no longer ignore the new competitive threats circling around our profession and we had to act,” said John Cowan, the executive chairman at SBG, which has more than 11,000 advisers across the UK.

In essence, Acre plans to transform the mortgage advice process. Founded in 2018, the startup plans to use blockchain to gather all components of the mortgage advice process into “into one unchangeable record of the transaction”, thus making the entire process faster and more efficient.

“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’re changing this – levelling the playing field for brokers using innovative tech, while putting an informed consumer at the centre of the mortgage process,” said Justus Brown, Acre’s CEO.

It has been reported recently that a Swiss mortgage bank Hypothekarbank Lenzburg has joined efforts with TokenSuisse, a crypto asset consultancy services provider, in order to “further its current offerings in blockchain and crypto” world.

This is not the first time Lenzburg has entered the blockchain world as it signed an agreement with Seba Crypto AG, a Swiss-based crypto bank, to implement Seba’s blockchain-based software.

Read more: Former Bankers Raise $103 million to Set up Regulated Crypto Bank