A solid base, industry-leading shareholders and a vision of better fund distribution combine to deliver next-generation infrastructure by leveraging the expertise and experience of the FundsDLT people.
Dominique Périlleux, COO, takes stock of what has been set up and reveals that the means for rapid scaling up are now in place.
Although incorporated only last year, FundsDLT is built on solid foundations that can support the growth of all investment fund distribution actors, large or small.
Simplifying fund distribution and fostering financial inclusion is the FundsDLT vision. It is also a call that has been around for some time. It comes from the market, which sees that other sectors have succeeded in their digital transformation; they have opened up opportunities for their clients to maintain a competitive advantage.
For the fund industry, buying and selling investment funds in the future must become easier.
This is where FundsDLT comes in. Because we share the same goals, it is natural for us to work with our clients to achieve their objectives.
To do this, we deliver next-generation decentralised infrastructure for fund distribution. Our founding shareholders are the perfect representation of this strategic objective, with institutional leaders in market, post-trade infrastructure and services joined by two major companies active in asset management and fund services. They enrich FundsDLT knowhow, combining expertise from a technical side with deep knowledge of the investment fund business.
Well before our incorporation, some four years in fact, pioneering work had been going on to explore and realise the solution that our shareholders saw as necessary to future-proof the industry.
This meant that from day one of our corporate existence, the core team was in place and the primary, underlying experience was already there.
A comprehensive and committed team
The team has now expanded to some thirty people with a great mix of skills and backgrounds. We have specialists who understand operational and business aspects of fund distribution, as well as experts in the creation and running of blockchain platforms.
“FundsDLT is no longer a start-up because 30 people have worked hard to build the promise. We have progressively created solid layers: a corporate infrastructure, a community, a product and a brand.”
Dominique Périlleux, Chief Operating Officer
However, while we are helping the industry create new models and transform fund distribution, we also understand that new systems involve new issues and risk has not gone away. The team includes compliance and risk officers, thus helping us to grow safely at scale.
We are proud of our team: they have worked hard to build a workable, long term solution fit for a changed distribution environment. Thanks to their drive and dedication, FundsDLT is no longer a start-up but a provider that can sustain and consolidate growth by continuing its ongoing mission to develop innovative business solutions that meet our clients’ needs.
Ultimately, success for our clients comes from enabling the talent and expertise in our people. To do this, we put emphasis on clear leadership around the big picture while empowering our people to influence the realisation of the vision.
Concentrated on the essentials
Part of that leadership is to focus on getting the basics right. This has meant devoting time, resources and development on core services. It also means working closely with distribution actors, who might be banks or asset managers themselves, on various proofs of work that enable them to appreciate the fundamental changes that our services can bring.
We have concentrated on critical and essential processes such as registrar and account opening, transaction processing, cash settlement and reconciliation, as well as interoperability, while never losing sight of the fact that for our clients all innovations must enable efficiency gains and cost reductions. With these in place, the power of digital ledger technology to open up real time reporting and analytics is realised and digital transformation is accelerated.
Such relentless attention to the basics has enabled us to obtain a number of licenses for operations in Europe, as well as to regulatory approval to operate as a cloud computing service provider. These are recognition that the fundamentals for risk management are in place and the company has solid corporate governance. The key competencies necessary to grow at scale are in place. Clearly, we have the capacity to deliver the services needed by fund distribution actors.
A positive impact through innovation
Now, with a solution in production, we are moving full speed ahead. Underlying this momentum are two key ways of working that have been at the heart of how we operate since inception: an open ecosystem and agile product management.
Thanks to API interoperability, working with and being able to connect with those service providers that are suited for the particular business of any client can greatly ease the transformation process. This open model brings companies having specific talents and expertise together with fund distribution actors, allowing all to benefit.
Agile management allows companies to take a step-by-step approach to incorporating new products and services, building up from practical use cases, proofs of work and minimum viable products. This is an incremental and iterative approach with a strong focus on business outcomes and bringing products to market.
Flexibility and ability to adapt are important, as they have always been, but the pace of change is quickening. The initial vision remains the same but how we enable our clients to get there is dynamic, not a landing point. The needs and circumstances of fund distribution actors will also change over time and working in an open ecosystem in an agile way ensures that new services can be rolled out as and when needed.
The perfect partner for next-gen fund distribution
To address the current issues the funds industry is facing and to future-proof and grow business requires a serious response.
Built on solid foundations by an expert team and leading industry players, FundsDLT represents a trusted partner for the investment fund industry in its transformation to next-generation distribution.
The fund distribution ecosystem is becoming richer and deeper. Taking advantage of this ecosystem enables new opportunities for easier, more inclusive savings and investment for all. We are only at the beginning of this journey!