Blockchain makes Mutual Funds Investment Hasslefree
Open architecture investment has been an area prone to complications, and resolving consequent issues is a challenge that wealth managers often face. California-based blockchain company HashCash Consultants has addressed this problem and is offering blockchain solutions specifically aimed at streamlining the multifarious processes in an open architecture. This will also include third-party investment models placed in separately managed accounts, often a recurrent source of complex operational challenges.
What is Open Architecture Investment?
Investment architecture – the method by which professionals handle how you purchase and what you do with your investments – are of two types. Namely, “closed” and “open”. The open model offers greater flexibility than the closed model. It provides access to the entire investment market, and one can choose to invest in products that are not owned by their broker as well. This option is not available in a closed architecture investment where the choice is limited to the broker’s in-house products only.
Deciding between the two is important for any person planning to invest because it determines if you are getting the investment of your choice. It also becomes indicative of whether your investment will make money for you or for some other entity without your knowledge.
Challenges Facing the Open Architecture System
Open architecture brings tangible investment advantages and has therefore gained traction among clients who demand more choice. However, there are certain obstacles holding it back from its optimal utilization. First, it is a major hassle for wealth and asset managers to coordinate between different platforms, causing difficulties in distributing, monitoring and updating third-party models.
Second, managers have to resort to proprietary portals and are required to apprise program sponsors of the investment model being used.
Lastly, outdated technological infrastructure makes open architecture investment cumbersome.
Advantages of HashCash Blockchain Solutions for Open Architecture Investment
The implementation of DLT or distributed ledger technology economizes time by enabling portfolio managers to notify all subscribed clients in real-time of any change in the portfolio. It further enables instantaneous tracking of cash flows and performance of individual accounts. Management of fees paid by sponsors is made hassle-free as smart contracts automatically process and validate a transaction every time the model is downloaded or used.
HashCash Consultants facilitates these by collaborating with the internal team of client-companies integrating existing business processes and IT infrastructure with a blockchain platform designed to meet the goals of the organization.
The blockchain company will install and set up in-house 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.
Hashcash’s services also include integrating its client’s existing products such as customer portals and banking apps with blockchain so that the organization can automate back-office activities and connect to other banks while using existing applications.
Speaking about the future of open-architecture investment and blockchain,Raj Chowdhury (MD of HashCash Consultants) says, “Clients are drawn to open investment architecture because of the improved asset allocation and diversification it offers, along with better returns. With blockchain, the cost involved in the intermediary processes also becomes more affordable.”
Brokers, too, see an incentive in incorporating blockchain in wealth management, as it makes their job comparatively easier and enables them to perform to their full potential.
Given the number of benefits clients, as well as brokers, stand to enjoy, blockchain will find a bigger role to play in this industry in the near future.
About HashCash Consultants
HashCash Consultants started as a Blockchain Consulting Company in California. Today, HashCash products enable enterprises to move assets and settle payments across borders in real-time using HashCash Blockchain network, HC NET. Financial Institutions use HC NET for Retail Remittances, Corporate Payments, Trade Finance, and Payment Processing. HashCash also runs the US-based cryptocurrency exchange, PayBito and the leading Cryptocurrency payment processor, BillBitcoins. HashCash offers cryptocurrency exchange and payment processor white label solutions, comprehensive ICO services and customized use case design and development. HashCash propels advancement in the field of blockchain through the Blockchain1o1 program and its investment arm Satoshi Angels.