Distributed Ledger Technology (DLT) or Blockchain can be implemented in a number of pragmatic ways within the wealth and asset management segment. The highly flexible Blockchain technology would enable the client to ensure an on-boarding process without significant friction. These distributed ledgers can streamline management of model portfolios, speed the clearing and settlement of trades while easing the compliance burdens concerning Anti-Money Laundering (AML) and Know Your Customer (KYC). This would enhance the client experience by abandoning redundancy and reducing operational expenses. Blockchain can be implemented to reconcile information through already existing systems and create opportunities for new markets and products. It can be included in transactions where assets are moved between parties or contracts are executed. These are typical to transactions involving rollovers, trusts, estates, and insurances. The distributed ledgers helps validate and execute complex transactions in near real-time. The smooth operation that Blockchain technology offers will enrich the client experience by streamlining different processes while significantly reducing operation costs,
Recent explorations into innovative ways to enable quicker transactions and better customer service by organizations in the financial sector have benefits beyond just these. It prioritizes cost efficiency in its operations as well as maintaining utmost transparency that satiates the regulators and customers both.
Digitization of records has given birth to large volumes of data, making it extremely important for any organization to defy security threats while achieving superior cost efficiencies. These requirements are met by Blockchain, a technology providing decentralized ownership. With its immutability and cryptographic security of data, Blockchain has enabled the realization of the disruptive potential of this technology. The following paragraphs will discuss in depth, the different ways through which wealth and asset management firms can harness the benefits of Blockchain technology through real-world applications. The paper will also give an insight into approaching Blockchain innovation as well as highlighting near-term practical applications of the same.
Blockchain technology can be brought in to build and enrich a client profile that will surpass excellence. All confidential data points such as net worth, social media profiles, account information, preferences and profile data are allowed to be given access to with proper permission - to edit, read and write the data. Each data point and individual block of data is stored securely and can only be accessed through authorized permission.
Open architecture, in its definition, is the ability of a financial institution to offer its clients proprietary as well as external services and products. The perspective offers investment firms to get past the conflict of interest or favoritism, practicing which the firm may only recommend proprietary products.
Boasting synonymous terminologies like automated trading, system trading, mechanical trading systems or algorithmic trading, the Automated Trading System allows traders to execute clearly conditioned rules for trade entries and exits. Once programmed, these norms and regulations can be executed via any computer. The norms set for the trade entries and exits deal with conditions such as simplistic moving an average crossover, or, it can be an amalgamation of complex strategies which involve a deep understanding of the programming language of a particular user’s trading platform. It may from time to time demand the expertise of a sought-after programmer.
Investment Management Institution responsible for managing the client’s portfolio
Federates the friendly account id mapped with actual account details of the client.
Checks the KYC & AML details of the clients
Can act as a custodian member for trade transactions
Individual Trading Members, Banks & Independent Financial Institutions can act as a clearing member for facilitating the trade settlement process seamlessly with clearing account id’s
Will be monitoring the entire trade cycle process flow with distinctive account id to master privileges.
Map your existing business processes and IT infrastructure in our areas of expertise to identify opportunities where we can add value.
We work with your Internal teams to identify your organizational goals and pain points so that our Use Cases can be designed to address the same.
Post collaborating with your teams, we reimagine your existing business processes to meet your expectations from us. To do so, we leverage the benefits of blockchain.
We work with you to install and setup our products to your IT infrastructure system and in line with your data security and compliance policies.
Post successful POC implementation, a project plan is conceived to take the Use Case to production.
Once the Use Case is defined, we work with your internal team to carry out a Proof-of-Concept test. This is to provide you confidence in the Use Case.
Hashcash offers services to integrate your existing products such as customer portals and banking apps with blockchain so that your organization can automate back office activities and connect to other banks while using existing applications.