Digital & Technology

FNZ and FinSwitch announce collaboration

FinSwitch, a transaction switch solution provider, and FNZ, the global platform-as-a-service provider, have signed an agreement in which FNZ will provide a new blockchain-enabled administration utility for the South African fund management industry.

FinSwitch is a “transaction switch” designed by the industry, for the industry. It links market participants by providing a mechanism for data, such as trades, reconciliations and regulatory reporting, to flow between various product providers and investment managers. It has 140 existing customers, including all major fund providers and distributors in the region.

The partnership will enable trading, pricing, reconciliations, account opening, transfers, sharing of instrument data, regulatory reporting, and more for FinSwitch clients. This will all be delivered via a leading-edge, cloud-based and blockchain-enabled application based on FNZ’s existing and proven ChainClear ecosystem, according to an FNZ press release.

FNZ launched ChainClear – the world’s first production blockchain ecosystem for the investment industry – in 2019. The solution leverages blockchain technology to replace the thousands of copies of transaction and holdings that plague the managed funds industry, with a single, secure, verifiable source of ‘the truth’, universally accessible by all parties. This vastly reduces cost, complexity and risk in back-office operations, that is ultimately borne by retail investors.

The features will become available for use by FinSwitch clients later in 2020 and will provide additional functionality, resilience and performance to what is already a highly functional and reliable solution for fund administration in the Southern Africa region.

Nick Baikoff, Managing Director, FinSwitch, said: “FNZ was selected after a comprehensive and competitive tender process. We look forward to working with them to implement this solution, that will deliver significant value for our clients in the form of reduced cost, complexity and risk.”

Hugh Evans, Managing Director, South Africa, FNZ, said: “We are delighted that FinSwitch has chosen us to provide its blockchain technology solutions. Our mission as a business is to help people achieve their financial goals by reducing the costs associated with investment. FinSwitch’s breadth and deep client relationships make it the ideal partner for FNZ as we expand and develop our offering to the South African investment industry and lower the barriers for retail investors in a maturing market.”