FNZ launches blockchain solution for Africa funds
Today, FNZ is in production in South Africa with ChainClear. Last May, the UK fund and wealth management company closed the deal with FinSwitch, which connects the fund management sector and unit trust in South Africa.
Since the platform uses blockchain, it also provides a single truth source regarding fund ownership. This reduces the need for asset managers and transfer agents to reconcile several fund ownership records with the cost savings.
Managing Director at FinSwitch says that FinSwitch blockchain presents a chance to restructure the existing operational topology of the Collective Investment Scheme. It brings a drastic improvement in cost-reduction for all stakeholders, making investment more affordable to the end investor.
A real-time process replaces a batch processing solution. No doubt, the platform is already allowing thousands of transactions every week, but for now, it is running in parallel to the legacy system. FNZ Director told that the development has taken the South African market at the forefront of managed fund servicing.
FNZ has grown promptly. Last May, they had assets of $549 million, which have increased to $960 million.