Outsourcing solutions provider SEI will be trialling blockchain technology again this year in the SEI Wealth Platform’s end-to-end processing.
This comes after the company undertook an internal blockchain pilot test, for a period of six weeks, last year.
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Blockchain was not implemented following the test as SEI said implementation of the technology would only be truly useful if all participants in the asset transfer “chain” implement it as well.
The next trial will also last around six weeks, and will take place in 2018.
SEI Wealth Platform’s proposition director, Kevin Russell, said: “We had a pilot on blockchain on our asset platform last year, an internal test which was aimed at automating an end-to-end process.”
Russell also said the company is exploring ways to use blockchain in collaboration with other technologies such as AI.
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By GlobalData“The opportunity [with blockchain] only comes fully into play when all other participants in the asset transfer chain use it too.”
“If we can do that in the next phase, [that would be good].”
The next stage could be involvement in the FCA sandbox.
The FCA regulatory sandbox enables businesses to test products, services, business models in the real market with real consumers.
Russell also noted there is a conflict between blockchain and GDPR.
The ‘right to forget provision’ under GDPR allows a client to request data to be deleted, meanwhile blockchain is said to be immutable, and transactions cannot be altered on the distributed ledger.
He added: “The ‘right to forget’ should exist where there are no regulatory conflicts.
“The market has to agree on policy and standards [to appoint regulations alongside technology].”
SEI said it will be expanding into new markets in 2018, but the company is still in the process of reviewing its options.
The wealth management vendor’s AuM grew by £9.3bn last year.
