Blockchain was long considered an answer without a challenge, with the exception of bitcoin speculation. Lately, however, it has been suggested that distributed ledger technology, commonly known as ‘DLT,’ would perform back office activities for the enormous wealth management business, therefore proving its usefulness.
Currently, Vanguard Australia has used blockchain technology to support, boost productivity, and decrease risk in the Australian financial services sector. The new technology will provide a common record-keeping mechanism for all cash and investor operations and holdings, eliminating an expensive, time-consuming, and ineffective reconciliation procedure based on spreadsheets. Previously, this resulted in increased consumer expenses and a “substantial risk of human mistake.”
“The emphasis on straight-through processing for join and money-in operations with a large volume has been verified. Michael Lovett, CEO of Vanguard Super Australia, said that the product evaluation stage enabled us to resolve the majority of possible concerns and that the cooperation with GROW began on a solid footing.
This is not the initial time that a significant blockchain-powered initiative has been implemented in Australia’s financial services industry. After a seeming setback, last month, the Australian Securities Exchange (ASX) shelved its own initiative CHESS to substitute its settlement solution with a blockchain-based ledger.
