The Australian arm of the global investment advisor Vanguard will now manage all fund and investor transactions and holdings with the help of the blockchain technology
Vanguard Australia has deployed a blockchain-based back office solution for asset management developed by Grow. The DLTA platform is a single integrated tool specifically built for complex and highly regulated industries.
Tapping R3’s Corda blockchain technology, the solution will bring a shared record system for all transactions and holdings. By replacing a costly, time-consuming and inefficient spreadsheet-based reconciliation process, DLTA has already helped Vanguard Australia to achieve 100% STP for the reconciliation of investor funds.
Traditionally, fund administration involved loads of manual processes, causing a high percentage of errors. Besides, the legacy systems are disconnected, as every participant maintains their own on-premise system of record, without any modern API interfaces.
Therefore, distributed ledger technology is now able to improve efficiency and reduce risk in Australia’s financial services industry. Moreover, the firm will be able to save about 100 back and middle office hours each week, for all participants involved in the process.
The deployment gives the Australian financial industry fresh hope for innovation, just in time when the Australian Securities Exchange (ASX) paused its long-anticipated blockchain “CHESS replacement project”.