Lloyds Aims to Rewrite UK Homebuying with AI and Blockchain

Lloyds Banking Group has just proposed what could be one of the most radical overhauls of the homebuying process in the UK. At the recent FT Global Banking Summit, CEO Charlie Nunn unveiled plans to combine AI with tokenised customer deposits to remake how mortgages, conveyancing, and payments work. The end goal is to create a faster and more automated homebuying journey, one that includes less paperwork, fewer delays, and fewer intermediaries.

The Impact of AI

We’re getting more accustomed to hearing about ideas on how AI can reinvent certain sectors, so the new proposition from Lloyds doesn’t come as something entirely new. Ever since artificial intelligence entered industries that have been playing by old, familiar rules, it has driven efficiency, personalised experiences, and reduced the reliance on manual processes.

Most businesses already rely on AI to some extent, whether it’s to improve efficiency, cut costs, or enhance customer engagement. For instance, it’s often used in logistics to optimise delivery routes and forecast any supply chain disruptions. In the online world, it’s often implemented to enhance security and offer better overall experiences. For example, online casinos rely on it to analyse player behavior and provide recommendations that match their playstyles. Most sites that provide insights into online casino platforms now point to those that leverage AI effectively to personalise gameplay and offer dynamic bonuses. The tech is even implemented in healthcare, where it helps enhance diagnostics and create personalized treatment plans.

Therefore, to hear that Lloyds plans to apply it in transforming the UK homebuying process is really the next logical step. The tech can help automate a number of tasks that were previously handled manually, reducing errors and delays. Combined with tokenised deposits and blockchain technology, it has everything it takes to create a faster and more transparent experience for both buyers and sellers.

Lloyds’ Blockchain-Enabled Model

If the proposition ends up being put into practice, we could witness an entirely new homebuying process in the UK. There would be less intermediaries slowing down the entire journey as some parts of their work would now be handled by AI. As Nunn suggests, this would not only speed up the process, it would also allow those involved to focus on their core duties. For instance, he argued that the use of AI would leave brokers more time to focus on advice, as they would not have to deal with unnecessary paperwork.

With smart contracts implemented, the verification of documents and the transfer of funds would be automated and almost instantaneous. The contracts would only execute once all predefined conditions were met, creating greater certainty over timings and outcomes for both buyers and sellers. Additionally, more reliance on AI tools and smart contracts would help remove a good chunk of legal fees that are currently an inevitable part of every homebuying process.

According to the proposition, tokenised deposits would represent customer deposits on the blockchain and would be backed by institutional or retail funds. The idea is to offer efficiency unmatched by traditional banking while providing better regulation than stablecoins, which are often brought up in discussions about real estate transactions.

The “Smartphone Moment”

Speaking about the proposition, Nunn compared it to the revolution brought by smartphones. He said that the plan has the potential to change the way people in the UK buy and sell homes in the same manner smartphones have changed how we shop, socialise, and work.

Nunn also referred to the US GENIUS Act regulating stablecoins as a “wake-up call” that will accelerate adoption globally. He added that digital finance advancements like this could also help UK businesses boost their growth, but come with challenges of their own, including high energy costs and regulatory issues.

However, whether or not Nunn’s smart contract utopia will come to life remains to be seen. The entire plan is only a proposition for now, but Lloyd wants the system implemented by 2027 as part of its core infrastructure, with phased rollouts across the UK.
Of course, regulatory approval is paramount, and it’s yet to be seen how consumers feel about the reliance on AI and the security of blockchain-based systems. The initial enthusiasm from Lloyds’ is undeniable, and there’s no doubt we’ll hear a lot more about the proposition soon.