Calastone Research -mutual fund industry can save up to US$ 2.6 million owing to blockchain technology
According to a report by Calastone, the adoption of blockchain technology by the mutual fund industry will enable it to save at least $ 2.6 billion.
Increased savings for the mutual fund industry:
The reason for this is that it will save on IT costs as well as financial transaction cost significantly. This will mean far more profits for the industry than what they are able to make currently. The report clearly stated that with the help of blockchain technology, inefficiencies in the current financial systems can be eliminated. This will provide operational efficiencies and leverages to the mutual fund companies leading to significant operational profits.
The financial systems and industry are in awe of the blockchain technology. This is due to the fact that it can help them in saving tremendously on the IT cost. It remains to be seen however, the rate of adoption of the blockchain technology. Currently, a lot of research has been going into the use of blockchain technology for the financial sector.
Many of the financial companies are looking into the underlying technology that is the blockchain technology for creating proper systems. Moreover, there are quite a few options when it comes to adopting the blockchain technology. Companies are exploring the usage of Ethereum blockchain as well as Bitcoin blockchain. These will be replacing the aged IT infrastructure which most of the financial companies use currently.
According to Calastone, digitization alone saved at least 6 $ 35 million for the mutual fund industry in the last few years. Thus, any large-scale change to blockchain technology can help the mutual fund industry save a lot of money.
This is the reason why, Calastone, believes that any switch to blockchain technology will help the mutual fund industry immensely. Another reason is that with the help of real-time transaction verifications, the transaction costs will come down significantly. This will ensure that the saving in the transaction cost can be passed on to the mutual fund companies as profits.
Moreover, with the decentralization, the safety will increase tremendously as well. This will benefit the customers as well as the companies. The companies will have to spend less on safety-related upgrades. They will be able to concentrate on their core business much better instead of having to worry about safety as well as decentralization of the platform. The only thing which remains to be seen is the pace at which the adoption of blockchain technology actually takes place.