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Intermediaries for transactions are typically banks, exchanges, or clearing companies. However, blockchain simply utilizes computer networks to achieve secure transactions, making them more streamlined, efficient, transparent, and secure.
Enterprises are making substantial investments in blockchain technology. One of blockchain's key features is the network effect: the more participants, the greater the network's value. We believe that, due to Broadridge's extensive network, proving blockchain's functionality can be achieved through proxy voting. We handle 85% of proxy voting in North America and over 50% in other regions, serving over 50,000 issuers, more than 100 million investors, and thousands of financial institutions and intermediaries. This positions Broadridge to leverage the benefits of blockchain, and we are collaborating with industry leaders.
This is why we recently conducted significant technology acquisitions and conducted initial tests to support the existing system operation in a proxy manner. Recently, we announced successful pilot testing at shareholder annual meetings in collaboration with J.P. Morgan, Northern Trust, and Banco Santander. Although voting continued to take place in the traditional manner, a "shadow" voting register was concurrently maintained to collect experimental data on blockchain voting. Utilizing blockchain technology for voting offers three significant advantages: reducing negotiation complexity for improved efficiency, enhancing security through encryption, and increasing transparency in the voting process.
A survey by PwC found that 56% of professionals in the financial services industry recognize the importance of blockchain, yet 83% of respondents have only a "moderate" understanding of distributed technology. Undoubtedly, every executive leading Wall Street companies should assess how blockchain will impact their business. While there are many complexities and challenges to overcome, this is a rare opportunity.
For those who understand blockchain and believe in its potential, the opportunity is limitless. It has the potential to accelerate all transaction processing, whether it's fund transfers or proxy voting, as indicated by a collaborative research report from Accenture and McLagan. By 2025, blockchain could save the world's top 10 investment banks approximately $8 to $12 billion annually, representing around 30% of infrastructure costs. Additionally, a new report from Bain & Company and Broadridge concludes that using blockchain technology could save up to $30 billion for the global financial market. |
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Post time 1-11-2023 09:07:48