Mattias Eriksson, co-founder and chief executive of UK-based C8 Technologies, talks to this news service about the impact that technology such as blockchain can have on the wealth sector. C8 is an investment platform that offers investor clients access to direct indexing and execution capabilities, end-to-end, across asset classes and investment styles. This news service is looking at how the world of digital assets, and the distributed ledger technology that underpins those assets, continues to evolve and affect wealth managers’ business. We examine how these technologies affect privacy, pricing, efficiency, regulation and customer service. (See this article for a previous example.)
In the broadest sense, how do you see distributed ledger technology affecting wealth management today and in the next few years? Blockchain technology will make it possible to have more transparent, verifiable and rapid processes. Think how you transfer crypto between two individuals in seconds or minutes compared with international money transfers that take days and are costly and non-transparent. The under 30-year-old generation like crypto a lot as it signals a break with the old, stuffy world, controlled by central government. The wealth management industry has always struggled to hold on to the client asset as it is passed down to children. The development of digital offerings from wealth managers is designed to partially meet this key challenge, but the addition of crypto into the equation means that the goalposts are moving again and suppliers must continue to invest and adapt.
What potential does DLT have for enabling data privacy protection – an obviously important area for private banks, family offices and wealth managers? Where do you see areas such as know-your-client checks being helped, if at all, by this tech? Can blockchain provide any benefits for those trying to defeat hackers? Tedious KYC processes, for example, could benefit a great deal from blockchain development. If we look at a country like Sweden, we can see how things might change through blockchain use. Sweden introduced a digital banking pass for everyone which frees up its banking system, fosters fintech innovation, and simplifies processes such as switching accounts, onboarding, and empowering the client. It was no doubt easier for Klarna to enter the ecosystem there than in some other countries.
Continue reading: https://www.wealthbriefingasia.com/article.php?id=193690#.YgqPNOrMI2w
In the broadest sense, how do you see distributed ledger technology affecting wealth management today and in the next few years? Blockchain technology will make it possible to have more transparent, verifiable and rapid processes. Think how you transfer crypto between two individuals in seconds or minutes compared with international money transfers that take days and are costly and non-transparent. The under 30-year-old generation like crypto a lot as it signals a break with the old, stuffy world, controlled by central government. The wealth management industry has always struggled to hold on to the client asset as it is passed down to children. The development of digital offerings from wealth managers is designed to partially meet this key challenge, but the addition of crypto into the equation means that the goalposts are moving again and suppliers must continue to invest and adapt.
What potential does DLT have for enabling data privacy protection – an obviously important area for private banks, family offices and wealth managers? Where do you see areas such as know-your-client checks being helped, if at all, by this tech? Can blockchain provide any benefits for those trying to defeat hackers? Tedious KYC processes, for example, could benefit a great deal from blockchain development. If we look at a country like Sweden, we can see how things might change through blockchain use. Sweden introduced a digital banking pass for everyone which frees up its banking system, fosters fintech innovation, and simplifies processes such as switching accounts, onboarding, and empowering the client. It was no doubt easier for Klarna to enter the ecosystem there than in some other countries.
Continue reading: https://www.wealthbriefingasia.com/article.php?id=193690#.YgqPNOrMI2w
