How Developing Market Inefficiencies Slow Property Verification in Rural Banking

Written by:

Steve Marcinuk

Date:

29 Aug 2025

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The head of a financial technology company working in emerging markets says inefficient property verification systems are creating massive barriers to economic development, with some rural banks spending an entire day verifying a single property claim before issuing loans.

“A loan officer has to take an entire day and go travel out to the farm… interview the owner and get confident that he is actually owning what he’s offering as collateral,” says Aaron Moguin, Chief Operating Officer of Landano International. “Then talk to maybe some local officials in that town, that village, talk to some neighbors. It takes a day, and that’s for every loan.”

The Hidden Cost of Uncertainty

This time-intensive verification process creates substantial backlogs in lending, Moguin explains, effectively throttling access to capital in regions that need it most. The inefficiency stems from lack of trusted property documentation systems that could streamline the process.

“If you can convert that due diligence into something that might take five or 10 minutes because you trust the records that are on our system, then that speeds that up,” Moguin says. “It makes financing not only more accessible but a lot quicker.”

The impact extends beyond individual borrowers to entire regional economies, as businesses struggle to access growth capital and families miss opportunities for wealth building through property ownership.

Global Solutions Taking Shape

Moguin points to several emerging solutions that could help modernize property rights systems. In Moldova, for example, the government is exploring blockchain-based property records as part of their EU candidacy process.

“They have to put up a small fraction of whatever the total amount of money is for upgrading some kind of infrastructure, digitizing some kind of infrastructure,” Moguin explains. “There’s like a lot of money out there that Moldova has available to them if they can just come up with the right kind of solution.”

The push for modernization comes after corruption scandals in traditional property systems. “The main person in charge of their land registry just got arrested and sent to prison for a huge fraud scheme,” Moguin notes. “So they have issues with that.”

Building Trust Through Technology

While technology alone can’t solve all property rights challenges, Moguin argues that digital systems can help reduce opportunities for corruption while increasing accessibility.

“If you have it on blockchain, it’s hard to change and also it’s a lot more accessible in some of these areas where the traditional legacy system isn’t that usable, isn’t that accessible for people, and can also tend to be more corrupt,” he says.

The key is implementing solutions that work within existing legal and cultural frameworks while providing better security and efficiency. In Ghana, for example, Landano International is working with traditional authorities to digitize property records in ways that reinforce rather than replace local governance.

“We’re partnering with governments in these areas, especially the regional governments outside capital cities where the problem is most acute,” Moguin explains. “Because of the legal structure there, they have all the authority to deal with land issues in their areas.”

A Global Platform Emerges

Based on early successes in specific markets, Landano International is now developing a global platform that would allow property owners anywhere to begin documenting their claims digitally.

“At some point I had a light bulb go on over my head that it would be really cool if we could just offer this out to individual users all around the world,” Moguin says. “If you own property and whatever your current system is for being able to prove that isn’t really working for you, then you can establish your claim on our platform.”

The system will include jurisdiction-specific guidance to help users document their claims in legally compliant ways. While it won’t immediately solve all property rights challenges, Moguin believes it could help lay groundwork for more efficient, trusted property systems worldwide.