Allfunds Blockchain streamlines product design
Allfunds Blockchain, the arm of Allfunds (AMS:ALLFG) specialized in blockchain technology and its application in the development of solutions for the fund industry, has expanded the capabilities of its FAST solution to digitize the process of exchanging mutual fund portfolios between financial providers.
FAST was launched in 2021 with the aim of improving the experience of end investors and financial institutions when making Spanish tax-free transfers. The new enhancements to FAST will mean end investors benefit from safer, more efficient channels to carry out mutual fund share transfers between financial providers, becoming a fully digital process via Allfund’s existing blockchain technology.
The enhanced FAST product seeks to set a new, industry-wide standard for stock transfer processing. Additional benefits from the new iteration of FAST include:
• Greater cost efficiency and improved risk management;
• Complete digitization of share transfers, which means a significant reduction in the duration of the existing process from 3 weeks (on average) to less than a week;
• Improved traceability, giving all members of the ecosystem the ability to monitor the status of their transactions in real time.
Allfunds has collaborated with a working group of leading industry participants to deliver the improvements to FAST. The group’s overall knowledge of the financial industry and understanding of previous obstacles to the share transfer process have ensured the establishment of a solution that benefits the entire value chain: from platforms and depositories, distributors and asset managers, to the end investor.
The working group includes entities such as Allfunds Bank, BBVA, BNP Paribas, CACEIS, Cecabank, Crèdit Andorrà, Diaphanum, Fidelity, ING, M&G, Magallanes, Morgan Stanley, Renta 4, Schroders, Santander, Tressis and Varianza.
Rubén Nieto, CEO of Allfunds Blockchain, said: “We are proud to have led this task force of industry leaders with such strong experience and reputation, and we are grateful for their efforts and creativity throughout the development process. The improvements to FAST mean that we continue to demonstrate the leading role we play in delivering innovative solutions to the funds industry, and the continued effectiveness of our WealthTech DNA in driving industry transformation.”
Juan Alcaraz, CEO of Allfunds, continued: “Allfunds is committed to enhancing its broader product offering to meet the changing needs of the wealth and asset management industry against a highly dynamic macroeconomic backdrop. Our new FAST solution is a direct reflection of this commitment , and the value we place on continued engagement with customers, industry stakeholders and our peers to ensure our suite of products meets the needs of companies wherever they do business.”
The solution will be operational and available by mid-2023, and for customers who integrate FAST into their activities, each of them will be required to follow standard market rules and practices. Participating entities will be closely involved in managing the solution as a result, ensuring it continues to evolve and improve to meet the changing needs of the industry.