Wealth Manager Northern Trust Hands Over Blockchain Platform to Broadridge

It was announced on June 26, 2019, that the Northern Trust has turned over its blockchain platform to Broadridge, a financial solutions and fintech firm.

The purpose of this handover was stated as the improvement to the service as the platform works to streamline and automate tasks such as middle office function and also works with private equity asset servicing.

As part of the handover, Broadridge will help develop the platform leveraging blockchain technology which provides data and analytical tools that connects the complex PE lifecycle for market participants.

By making use of the platform, PE firms may better manage to communicate and engage with their investors and it also enhances capital and cash flow management.

“The alternatives/PE marketplace is expanding rapidly, and the technology needs of this evolving marketplace are underserved,” said Eric Bernstein, Broadridge’s head of asset management solutions. “Broadridge’s unique position as a network enabler, and successful record in utilizing blockchain technology will allow us to help transform the private equity industry. This is another example of Broadridge’s commitment to driving the innovation roadmap for the financial services industry and has the potential to be a real game changer.”

The Handover

With this new development, the PE solution will be made available to all PE funds that are domiciled in Guernsey and Delaware which includes those that are administered by the Northern Trust.

PE clients of Northern Trust will be able to benefit from the fund administrators service and expertise with the added benefit of having access to an industry-leading platform supported by a global leader in financial technology.

“Northern Trust pioneered the development of blockchain technology that supports the complex PE lifecycle. The platform delivers real-time insight and transparency to all parties, including fund managers, investors, and auditors, and enables regulatory access when required,” said Pete Cherecwich, President of Corporate & Institutional Services, Northern Trust.

“For the benefit of our clients and the industry as a whole, it’s now time to hand over the reins to a technology provider with deep FinTech expertise. Broadridge’s administrator-agnostic position, coupled with its DLT leadership and global footprint, make them an ideal firm to open up this innovative technology to the marketplace, paving the way for the digitization of the asset class.”

Broadridge, on their part, will develop and expand on the private equity solution with a focus on increasing the efficiency in the market and providing more value to clients.

According to the press release, the blockchain solution has the potential to benefit the financial services industry in the improvement of transparency, the streamlining of business processes, eliminating manual reconciliations and reducing costs across the board.

It is no secret that blockchain has been applied in the financial services industry because it helps to keep track of the various transactions and figures across the board with greater efficiency than traditional recording systems.

This is not the first time that Broadridge has gotten involved in blockchain technology as they partnered with Santander bank in 2018 to facilitate investor voting through the use of proxies through a blockchain network. Northern Trust launched the first deployment of blockchain technology in the industry for the private equity market in 2017 and continued to develop from this through partnerships with clients and regulators.

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