Blockchain expected to simplify financial advice
/Blockchain technology is likely to have significant implications for advisers in the future, with blockchain technology able to reduce overheads and excess tasks.
The blockchain means financial advisers can spend more time with their clients, building relationships, than on red tape and functions that could be done more efficiently, like information collection. Young people are now doing almost everything online, and accessing financial advice at a younger age should be no different. Giving advice in real-time shouldn't have barriers, with the blockchain offering ways to make this happen sooner rather than later.
The blockchain is a digital distribution ledger allowing those with access a shared record of a transaction or contract between two or more parties. A permanent, transparent record is created that does not permit edits. This makes the blockchain a reliable source for everyone involved.
Financial advisers may be able to use the blockchain in several ways, including clearing and settlement of trades, managing client portfolios, storing and collecting client data, compliance functions, and getting new clients set up.
When bringing new clients into the fray, several identity checks must be made, with the blockchain providing access to all relevant parties in a trustworthy manner. This speeds up fact-checking and other manual tasks.
The financial advisory landscape is changing, with technology about to step into a much greater role than ever.