Shortage of Blockchain Skills Drives Financial Firms to Partnerships: Broadridge

Broadridge Financial Solutions, Inc. (NYSE:BR) has released a new report based on research by Greenwich Associates, which examines the impact that cloud computing, artificial intelligence, and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term or Distributed Ledger Technology (DLT) Distributed Ledger Technology (DLT) A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to Read this Term) will have on capital markets firms.

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The report - “Pathways to Profit: Leveraging Next Generation Technology to Drive Profitable Growth" - reveals that financial institutions are challenged to find the expertise needed to realize the full potential of new disruptors and therefore adopt a partnership approach to mutualize investment on non-differentiating business functions.

Specifically regarding blockchain, the report explains that DLT skills are in short supply, and DLT inherently requires multiple institutions to agree on an approach. Third-party partners can help in both regards. Broadridge’s work with JP Morgan, Santander, and Northern Trust in global proxy is given as an example.

“While banks are poised to benefit from rising interest rates, stronger economic conditions, growing profits, and buoyant stock markets, leading firms are establishing partnerships with technology specialists to enhance their operational infrastructure and secure their future,” said Tim Gokey, President and Chief Operating Officer of Broadridge. “These fintech providers offer an important resource to banks, providing knowledge in areas where these institutions are resource constrained and enabling them to focus on ways to augment their own unique business offerings.”

“Beyond the application of these new technologies, working with industry partners can drive new networks that bring value to all participants,” said Charlie Marchesani, President of Global Technology and Operations (GTO) at Broadridge. “New examples include accelerating securities settlement for interested parties to new modes to trade illiquid fixed-income securities to opportunities to drive efficiencies for buy-side to sell side reconciliation, these advances are taking shape and have the potential to create significant benefits.”