Another fine example of how Fintech innovative ideas can help the Financial Services market within the UK. We have seen over 2015/16, an increasing number of FinTech, Blockchain, Robo-advice and other start up companies hit the UK market by storm. The buzz around Robo-advice and Blockchain is said to bring a revolution to the Financial Services sector by 2020.
For 2017/18 FinTech companies are increasing their innovative ideas to address the market needs today.
So have you heard of Roboblock? Roboblock is the next generation of innovative solutions for the wealth & investment management market for 2017 and beyond.
So what is Roboblock? Combining both Robo-advice and Blockchain (permissioned), Roboblock enables wealth and investment companies to form an efficient and valuable network chain, creating new and improved distribution channels for the release of products and advice to consumers. It further allows independent asset managers to share information and distribute the relevant advice amongst each other and their investors, in a more secure and efficient way.
Furthermore, it enables firms to outsource asset management operations (either partially or fully), whilst still having 100% control and audit trail over their activities. For the counterparty, it provides the best opportunity for firms setting up distribution channels for their services.
So how would this work? There are three possibilities firms could explore when using Roboblock, depending on their preferred option. This includes, a closed peer-to-peer model which allows two portfolio management firms and their system to connect and allows the transfer of client portfolios, settlements, trading and reporting in real time.
For multiple sales channels, the peer-to-peer model is expanded to handle multiple sales channels. For a lighter version of the model, the exchange model is for information only and the portfolio manager would not know the details relating to the end clients. The financial institution would still be responsible for managing the client portfolio.
The evolution in the wealth and investment management industry is undoubtedly growing however, the two questions remain: Will technology out run what’s required under MiFID II regulations and how will this affect customers wanting human advice? The battle of man vs machine has become increasingly evident.
The new Payment Services Directive 2 ("PSD2") will increase the need for Roboblock solutions over the next few years. This Directive enforces financial institutions to open up their infrastructure to third parties securely and provide access to customers accounts and transactions. With the secure network platform that Roboblock provides to third parties and banking partners using a private blockchain link, this change will provide great opportunities for new entrants into the sector.
With Robo-advice increasingly being adopted by wealth and investment firm through the UK, it is inevitable that Roboblock will make its appearance within the next year.