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Magazine Issues » April 2022

Roundtable: The digital transformation opportunity

FundsTech – Does the industry need to think differently about innovation from a conceptual level?

Roche One of the challenges is the data, or sometimes the unavailability of quality client data. People often overlook the fact that the same data exists in many different places, such as your TA [transfer agency] application, your CRM [customer relationship management] system, etc. The data is replicated and not properly reconciled, which results in different information on the same entity in different places. API [application programming interface] and real-time connectivity can help create a golden source of data; basically, have one place that holds all the information, which results in less reconciliation, less maintenance of data in different places, and less incorrect data.

At Metrosoft, we believe in the use of trusted data sources, not in paper. Moving away from paper-based processes and having an entity-based central system that holds your golden source of data. Each entity, each investor, each UBO [ultimate beneficial owner] only exists once, and we should be leveraging data on entities.

Stevens – The mindset change already started a few years ago. We have more and more big players running pilots with fintechs and regtechs such as ours, and it’s becoming increasingly easy.

Today, there is a good ecosystem in Europe. Greenomy, for example, is interacting with the four corners of Europe and so we see some differences, but the overall momentum is improving. Some elements that may slow down implementation are security requirements and outsourcing requirements.

We see more and more sandboxes being adopted across Europe. The UK Financial Conduct Authority (FCA) set up the first digital sandbox in 2020 and other countries across Europe are working now on developing sandboxes. That is indeed a great way of making sure the financial markets evolve.

FundsTech – Luc, how else does the industry need to be thinking about blockchain and digital assets from the conceptual level to embrace these changes going forward?

Falempin – For private markets, the challenge is to switch from papers, or Excel, to something digital. Private markets are in silos, so data is replicated in many different places and each in a different system, so this is exactly where we think blockchain brings value. It’s able to bring a common ledger where you can transfer value that is shared with everybody.