The Future of Blockchain-Based Wealth Management
Out with the old
I will be focusing on a typically attractive and lucrative subset of financial institutions, wealth management, and its ability to adapt to a new generation of investors. If the goal is to retain and acquire clients, the question arises of how we can protect and establish new financial relationships throughout this shift.
A generation that interacts with technology seamlessly (Gen X and Gen Y) continues to demand systematic changes while valuing digital and personalized products. These re-wired investors possess an apparent mistrust for big institutions. They embody an individualistic mindset and demand the same quality treatment and products as high-profile clients. Not to mention their focus on speed, and ease of access.
If the goal is to retain and acquire clients, the question arises of how we can protect and establish new financial relationships throughout this shift.
In with the new
To a financial sector built on personal client-investor relationships, Asset Under Management fees, and traditional paperwork processes, this shift of mindset proposes a much-needed acceleration for the wealth management industry. We might start by addressing the general mistrust of the next generation. Moving services online is apparent but how these services are moved and what platform protects and manages customer data will set the tone for the future of wealth management.
I propose a new blockchain-based technology offered by blockpoint Systems to modernize wealth management applications and meet the demands of next-generation investors. Let’s make one thing clear, “blockchain” is no longer synonymous with crypto-currencies such as Bitcoin. blockpoint’s Multiversion Database (MDB) combines the benefits of crypto with the structure of more traditional SQL databases. Technologies such as data-validation, immutable data lineage, relational contract storage, and quick insertions offer a suite of tools to accelerate databases and help solve the wealth management dilemma.
Technologies such as data-validation, immutable data lineage, relational contract storage, and quick insertions offer a suite of tools to accelerate databases and help solve the wealth management dilemma.
Let’s address the first point of conflict: future investors don’t trust big institutions. Blockchain technology is built on trust and MDB offers structured data supervision for wealth management products and internal tools. Data can’t be tampered with, money movements are tracked, and data-discrepancies are flagged. wealth management platforms that leverage this technology establish decentralized trust with their clients.
Building more descriptive and predictive analytics to create more insightful client profiles is a necessity for the modern wealth management industry. Historical logging is the backbone of all MDB data storage techniques and offers rapid insertions and enhanced query speeds. Historical logging can handle large transaction loads and integrate reliable and scalable analytics. To a generation that values speed as well as security, MDB’s historical logging provides an unmatched solution.
Data can’t be tampered with, money movements are tracked, and data-discrepancies are flagged.
Let’s consider WillportTrust; a company offering an array of financial products built on MDB. Their wealth management products are at the forefront of this transformation and incorporate blockchain technology to track transaction history and enforce a set of database constraints to combat data manipulation. This constitutes a wealth management portal that emphasizes security and analytics. WillportTrust doesn’t waste time managing their database so they can focus on the quality of their product.
For the transition to digital space to be done right, security, scale, verification, and analytics must be prioritized. As the social climate adjusts, so must the databases that we rely so heavily upon. Traditional databases offer a dated solution to data storage and retrieval, one that relies on data manipulation, erasing, and rewriting data. It’s time to modernize the databases that run our applications.
