Digital property exchange platform, PEXA is launching its full proposition to the UK market in September through a series of regional roadshows, adding its sale and purchase capability to its existing remortgage platform.
To officially launch and showcase its platform, PEXA is hosting a series of six regional roadshows across the UK to give conveyancers, lenders and other market stakeholders an early view of the PEXA platform. Starting in Leeds on the 9th September, and visiting Manchester, Birmingham, Cardiff and Exeter before finishing in London on the 23rd, PEXA is also using these events to bring together industry experts in each region to explore the themes currently impacting the housing market and how the offering can address them, with a series of panel discussions featuring experts from across the sector.
The technology uses PEXA Pay, the seventh net settlement payment scheme to clear through the Bank of England, to enable the settlement of funds to happen almost simultaneously with the lodgement of title with HM Land Registry when certain conditions are met. As a result, the platform streamlines the whole process, removing the need for monies to be transferred through multiple parties. It increases security of payments with infrastructure designed specifically for this purpose in the UK market, while also reducing reliance on traditional banking systems to minimise delays. Data from the Homeowner’s Alliance shows that 88% of moving day delays are the result of delays in the transfer of funds.
On top of that, the platform improves the quality of the data going through the system to increase transparency and collaboration between all parties. In turn, this reduces requisitions and increases certainty of completion which is one of the main stressors for any stakeholder involved in the process.
The formal launch follows PEXA securing approval from the FCA in April, enabling it to act as an Authorised Payment Institution (API). This means PEXA is authorised to act as a Third Party Managed Account (TPMA) provider and is able to handle client monies on behalf of lenders and conveyancers.
Prior to launch, PEXA has been working with a group of early adopter conveyancing firms to onboard them onto the platform, with a view to trialling the new technology. PEXA completed the first digital transaction in the UK earlier this year in conjunction with Muve and Hinkley and Rugby Building Society, as well as securing formal commitment from NatWest for the lender to implement PEXA for its remortgaging capabilities, with a view to expand this to sale and purchase next year.
In conjunction with its remortgage proposition, PEXA can now facilitate 70% of all transactions in England and Wales.
PEXA has also spearheaded the Future Property Transactions Group, an initiative that bring together regional stakeholders to collaborate on the future of the industry and the solutions required to make the transaction process clearer, safer and more certain for all.
Joe Pepper (pictured), UK CEO at PEXA, commented: “The launch of PEXA’s full proposition marks a historical moment both for the business and the wider UK housing market. We have invested significant time and resource to develop and deploy the trusted digital infrastructure that will support the evolution of property transactions.
“This achievement is a true testament to the team who have worked tirelessly to get to this point. There is no silver bullet solution, and we want our roadshows to serve as a platform for a deeper collaboration with the conveyancing and property industry; but we know the enormous potential of this technology and the positive impact it will have for conveyancers, lenders and their customers. Our launch roadshow provides an exciting opportunity to showcase this.
“We know cross-industry cooperation is vital as the UK property market aims to create a more reliable, secure and certain transaction process. It is through engagement with the broader industry that we have developed our proposition to help tackle some of the pain points in the transaction journey. The FCA approval is external validation of our considered approach and the controls and systems we have put in place, while the completion of the first digital transaction is proof that this is a solution that truly works in practice. We look forward to working closely with our industry stakeholders and customers as we roll it out broadly."
