#USA #Tampa Bay #Escrow #Nezz #Lopsii Olagoke

Escrow Processing: A Lingering Challenge in High-Value Transactions

In the landscape of modern finance, it's perplexing that high-value business-to-business (B2B) transactions still heavily rely on outdated practices such as slow wire transfers and opaque escrow processes. In a recent episode of the podcast Disruption Interruption, host Karla Jo Helms speaks with Lopsii Olagoke, CEO and Co-Founder of Nezz, to delve into this pressing issue. Their discussion reveals the $35 billion U.S. title insurance and escrow market, which includes an estimated $19 billion in escrow alone, spotlighting the archaic methods that dominate these vital transactions.

The Costly Delays of Traditional Escrow

At the core of the problem lies a widespread acceptance of processes that function adequately without being thoroughly scrutinized. High-value settlements in sectors like commercial real estate, mergers and acquisitions, and other specialized contracts still require cumbersome manual coordination among multiple parties—including financial institutions and advisors. Each of these steps can result in significant delays, tying up capital that could otherwise be deployed effectively. Olagoke points out that once funds are deposited into a third-party escrow account, they can sit there, waiting for compliance checks or approvals before any transaction moves forward.

He questions the status quo: “Why does a wire take three days to process? Why do we just accept that this is normal?” His statements highlight an industry that, while recognizing the need for change, often drags its feet due to complacency. Moreover, the inefficiencies present in these processes lead to a cost that businesses should not have to bear.

The Cybersecurity Risk

Compounding the issue of delays is the looming threat of fraud. According to the FBI's Internet Crime Complaint Center, companies faced over $3 billion in losses due to Business Email Compromise (BEC) in 2025, with real estate transactions emerging as primary targets. The vulnerability arises from the reliance on email communications among multiple parties, which attackers can exploit to manipulate transaction outcomes or even impersonate key individuals involved in the deal.

Olagoke emphasizes the irrevocability of wire transfers, stating, “Once you send a wire, it’s done.” When a loss occurs due to fraud, the affected organization must absorb that cost—a financial gap that weighs heavily on many businesses.

Rethinking Settlement Coordination with Nezz

To tackle these challenges, Nezz has introduced an innovative solution designed to disentangle settlement coordination from the need to surrender funds to third-party custodians. Instead of sending funds to an escrow holder, Nezz allows users to lock the amount in their own account while facilitating all transaction stakeholders. This method empowers all involved parties to coordinate and track the deal transparently without giving up control over the money.

The platform is particularly well-suited for escrow and milestone payments, where transactions often face delays. Olagoke cites that if a 30-day closing period extends to several months, the funds can still remain secure under the agreed terms, allowing the payer to earn yields rather than letting valuable capital sit idle.

Nezz's solutions have garnered interest not just from traditional real estate companies but also from mid-market and enterprise organizations in various sectors, such as agricultural technology and marketing. This burgeoning demand has opened discussions that transcend payment speed, focusing on the overall cost of capital that businesses lose while their funds are tied up in inefficient processes.

Olagoke asserts, “Somebody is paying for the inadequacy of the system, and we want to change that.” His determination to shift this paradigm reflects a growing movement toward modernization in the industry.

Final Thoughts

As various industries grapple with the inefficiencies of outdated practices, the case of escrow transactions serves as a critical reminder that resistance to change can carry significant costs. If we hope to realize the full potential of advancements in finance, it is imperative that we scrutinize and overhaul the systems that govern high-value B2B transactions. Nezz’s innovative approach could disrupt the entrenched norms and herald a new era of efficiency in escrow processing.

In conclusion, as Olagoke eloquently questions the status quo, the financial world must ask itself: How long will we accept slow processes that increase our overall costs and expose us to unnecessary risk? The time for change is now.