Claude Metz and Marcus Ulm (Credit Suisse): innovation, blockchain and finance
Claude Metz and Marcus Ulm – respectively Head of Shareholder Services and COO say new technologies such as distributed ledger technology will profoundly change finance, provided they are correctly managed. Credit Suisse Asset Servicing takes an active role in this trend.
How is your firm involved in new financial technologies?
Marcus Ulm (MU): Besides blockchain, Artificial Intelligence and robotics software assist us in various activities. For example, we use Artificial Intelligence automation tool to help answer queries form relationship managers. This saves valuable time for our staff, who can concentrate on higher value added tasks.
Claude Metz (CM): In Shareholder Services, which I manage, we must stay relevant to investors. AML Due-Diligence procedures for example can be complex and time-consuming for everyone in the process. A natural solution to this is the AML /KYC mutualisation where investors can centralize their information and share them securely in compliance with GDPR and Luxembourg legal and regulatory requirements: this is why we are taking part in the i-hub project, together with Post and Fundsquare.
« Thanks to distributed ledger technology, all the stages are documented in lines of 100 encrypted characters. »
Can you explain this Fund subscription?
MU: The important thing about blockchain is to remain vigilant about security without posing an obstacle to innovation. In our firm, we have created an environment that helps us achieve both these objectives.
CM: We were approached to produce a ‘proof of concept’ for one of our customers. They had placed an order in one of our funds, and FundsDLT, the blockchain-based decentralized platform, reserved the cash in the customer’s bank account while placing the transaction with our transfer agent. Once the net asset value had been calculated, the transaction could be approved. Thanks to blockchain, all the stages are documented and “Hashed” to ensure the data is cryptographically secure and records are identical across all counterparty databases.
What are the benefits of such technology?
MU: It improves security, trust and efficiency. Transactions are performed more quickly, with fewer errors, leaving our staff time to concentrate on higher value-added tasks. Ultimately, the technology stimulates our minds and protects our competitiveness.
CM: In my opinion, the technology considerably improves the customer experience. Today, customers expect accessibility, security, reliability and lower costs.