BNP Paribas is working with AXA Ivestment Managers on the deployment of a blockchain-based fund distribution platform using smart contracts to ease the flow of information between buyers and sellers.
The French bank says the new Fund Link platform will speed up the onboarding process for both fund buyers and asset managers and improve the process of buying and selling funds through the use of embedded business rules and shared information across the full length of the distribution chain.
The digital platform, which is initially being co-designed with input from AXA, will also host analytical tools to help investors explore fund data to compare and select funds, and fund managers to fine-tune their distribution.
Joseph Pinto, COO at AXA IM, believes the technology will create operational efficiencies in an increasingly competitive market environment where pressure on fees keeps rising.
"The new technologies used by this platform can significantly enhance our fund distribution process and ensure we are well placed to meet the continued regulatory demand for increased transparency.”
Jean Devambez, head of product and client solutions, Asset and Fund Services, at BNP Paribas Securities Services, welcomes AXA's support for the project, which he says should help the fund manager meet the demands of new regulations, such as MiFID II, which will demand higher levels of transparency around the fund sales process.
“It is very important for us to co-design the solution with clients and we are delighted to have AXA IM on board,” he says, adding that the project will be opened to other clients in the near future.
The first functionalities of the new platform are expected to be released before the year is out.