Winterflood Business Services is featured in the Money Marketing article ‘Ben Centa: Tokenisation and the implications for advice firms’. In this article, Ben Centa, Senior Client Solutions Manager at WBS explores the growing importance of tokenisation in financial services and why advisers should care about it. While the concept may seem technical, Ben argues that the real value lies in the efficiency gains made possible through Distributed Ledger Technology (DLT).
DLT allows all parties in financial transactions to work from a single document, much like a shared online spreadsheet. As platforms adopt this technology, the resulting cost savings are expected to “trickle down,” enabling advisers to serve more clients and reduce the advice gap without the previously associated prohibitive cost
Ben also points out that regulatory frameworks like the Consumer Duty will pressure upstream providers to pass on some of these savings to end-users, preventing them from retain all of the benefits. This efficiency evolution could be instrumental in narrowing the advice gap and extending financial advice to broader segments of the population. Ben concludes that Tokenisation could well be the technological gamechanger the industry has been waiting for.
If you would like to discuss the article in more detail, please contact: Ben.Centa@winterflood.com
