FUND ADMINISTRATION

BNP Paribas targets next gen fund platform

BNP Paribas and AXA IM will create a next generation fund distribution platform using blockchain technology.

By Paul Walsh paul.walsh@strategic-i.com April 19, 2017 11:01 AM GMT
BNP Paribas Securities Services has partnered with fund manager AXA IM in the development of a next-generation fund distribution platform.

The BNP Paribas Fund Link will aim to increase the efficiency of the fund distribution process through the use of blockchain and smart contract technology.

The main objective of the link is to speed up the onboarding process for fund buyers and asset managers through the use of shared information.

It is hoped that deploying the platform alongside an end-to-end trading offering will remove delays and reconciliation costs as well as increase efficiency of the buying and selling of funds.

The platform will also deploy analytics tools to allow for data comparison prior to selecting a fund.

“Operational efficiency is a key area for us in an increasingly competitive market environment where pressure on fees keeps rising,” said Joseph Pinto, COO at AXA Investment Managers.

“We believe that 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, said the platform was bringing together various ways technology can improve the fund distribution process.

Devambez also said the platform was designed due to regulatory demands for higher levels of transparency around the fund sales process.