Blockchain-based solutions are enabling next-generation fund distribution. We look at Beewise, an innovative app for retail investors launched by Azimut, the leading independent asset manager in Italy.
How asset managers distribute their investment funds is changing. The new generation of investors are increasingly expecting a better experience, On the other hand, asset managers need to find different – and more efficient – ways of engaging with client segments and attract the upcoming generation of digital natives.
Some forward-thinking companies have already taken concrete steps to address these important issues. An interesting case in point in the asset management world is the Beewise Investment App.
"Millennials are asking for a new, fresh approach to finance and they expect brands to take action alongside them." - Matthias Van Den Eede, Head of Beewise
This was created by Azimut, Italy’s leading independent asset manager. As Giorgio Medda, CEO and Global Head of Asset Management and Fintech at Azimut and Matthias Van Den Eede, Head of Beewise, explain in the video below, Beewise is specifically targeted at young, retail investors and enables direct, fully digital investments. With a minimum investment of 10 euros and a focus on self-directed monthly investment plans, it aims to make investment simpler and more accessible for all.
The backbone of this process is FundDLT. Indeed, an entire system was put in place that enables Azimut to offer an innovative, Direct to Consumer (D2C) model for fund distribution. It naturally includes investor digital account opening, which many other digital financial solutions have offered in the past years. But the great advantage of this solution is that it also provides direct access to the fund registrar through order processing, cash settlement and register maintenance.
"Through this new app, we intend to reach market segments that are not yet served. We want to help people become more aware of the importance of investing." - Giorgio Medda, CEO and Global Head of Asset Management and Fintech at Azimut
Simplicity and superior user experience are important in the new D2C environment. Beewise was designed to ensure that accounts can be created digitally and within minutes and for processing to be frictionless. The FundsDLT solution enables full automation of processes. To do this the company has built up an ecosystem in cooperation with specialist fintechs. These third party service providers are expert at automating solutions for KYC, PSD2 and investor information requirements.
Specifically for this Italian company, FundsDLT also provided functionalities for Azimut to manage itself the local Italian taxation related to marketing foreign funds in Italy. The role of a withholding agent, or “sostituto d’imposte” is one that asset managers usually outsource in Italy.
Nowadays, asset managers are looking to develop customer-centric business models while at the same time simplifying both these models and their operating models. Also, with the rise of new ways of dealing with and sharing data in real time that has been seen in all industries, asset managers need systems in place that that enable them to obtain data insight on their operations and investors. D2C by FundsDLT allows them to do this.