Both entities announced a pilot plan during the real estate fair held by the bank in New York
With the initiative to promote the first pilot plan to incorporate mortgage loan contracts to be signed digitally at the time of acquiring a property, the Association of Multiple Banks of the Dominican Republic (ABA) and Banco BHD are betting on digitalization as a tool for financial inclusion.
The initiative, led in its first phase by Banco BHD, which represents a milestone in the country's financial history, consists of the signing of a purchase and sale contract and mortgage loan through a digital channel, including the digital signatures of the representatives of Fiduciaria BHD, the construction companies and the purchasers who are abroad.
The announcement of the pilot plan and the details of that project were offered during the real estate fair that the aforementioned bank recently held in New York, United States.
Executives from both ABA and BHD stated that the objective of this initiative is to establish the critical path to materialize the acquisition of financial products, including the possibility of purchasing homes, through a digital channel, guaranteeing the legal security of all parties.
With this pilot program, they explain in a press release, the first steps are being taken to allow Dominicans abroad and in the country, interested in acquiring financial products, to do so remotely.
“This facility reduces operating costs related to these transactions, allowing all Dominicans, including those residing abroad, greater access to financial and real estate services in an agile and secure manner, at the speed of a click. Without this project, services had to be provided exclusively in person, meaning that Dominicans had to travel from abroad to sign documents and authorize third parties to expedite the process. This not only increases the cost of the service but also slows down the process of obtaining it,” stated Rosanna Ruíz, Executive President of the ABA.
The digital signing of mortgage contracts and other financial products will be possible with the incorporation of documents digitally signed through qualified certificates, in accordance with Law 126-02 on Electronic Commerce and Digital Signatures and that, for these purposes, the services of the ABA will be used as a certification entity and provider of qualified digital signature services.
Steven Puig, president of Banco BHD, stated, “We are laying the groundwork for this type of transaction to become routine at our institution. Our goal is to promote the progress of Dominicans through accessible and innovative financial services; in this case, we are taking an innovative step to facilitate home financing, especially for Dominicans living abroad.”.
For the first time since the enactment of Law 126-02 on Electronic Commerce, a pilot program of this nature is being implemented. “BHD is the first Dominican bank to take this important step, which is consistent with our origins and the experience in mortgage banking that we have accumulated over the years,” stated the bank's president.
When Banco BHD began operations in 1972, it was known as Banco Hipotecario and at that time it specialized in mortgage financing programs.
