New emerging technologies are exciting when it means transactions between parties and agencies can be quicker, safer and more protected.
But what about blockchain technology, a distributed ledger, is all the rave? Blockchain is a kind of database that constantly updates records of information, in sync, and is visible to all who have access. Access to specific parts are given as “keys” to the blockchain, and only authorized keys can input and view data. Encryption makes blockchain resilient to foreign tamperings and keeps information secure.
Through simplifying the economic transfers, these blockchain technologies can cut out third-parties with agencies. But title insurance companies, such as Monarch Title, won’t be one of them.
Why blockchain technologies won’t replace title companies:
- Nothing beats good ol’ human interaction. Clients rely on their team of attorneys, bankers, realtors and title companies to ensure they’re getting the best deal. The technology is currently incapable of managing all these roles and having the knowledge and experience to execute these tasks. There is nothing like the wealth of information your legal team will be.
- Documents need to be understood, reviewed and cross-examined at local, state and federal levels.
- Simply put, human error. About 30 percent of title searches result in some form of error. Name misspellings or omissions are common plagues to the public record. No matter how advanced the technology, blockchain’s are incapable of determining what is actually an error.
- Blockchain is still too immature a technology. Counties in small towns and rural areas across Missouri still rely on paper recordings in local county offices. Where blockchain can’t reach some of Missouri’s small-town citizens, Monarch has five locations throughout central and northern Missouri to service even its remote customers.
- Mediation between parties. There is no current way for blockchain to foster a space between parties for escrow closing disputes such as requesting tax information, confirming payoff statements, verifying power of attorney or issuing final title policy.
- Blockchain can only account for information attached to the title, which doesn’t always include liens or divorce filings. No two transactions are the same. At Monarch, our staff has a combined 151 years of experience, and are well-versed in handling each client transaction with knowledge and care.
At the end of the day, title insurance companies aren’t going anywhere. We do more for clients than focus on land transfers and closing deals. This is a client-driven field and always will be. Blockchain, while an alternative, private database, doesn’t have worldly knowledge as a working professional to advocate for clients. So don’t worry: Your team here at Monarch Title won’t be replaced by blockchain and will always strive to provide you “Service with Distinction.”