Calastone eyeing NPP: Hayward

A perfect storm of technology, regulation and market volatility is supercharging the transformation of Australia’s financial services this year, according to Sarah Hayward, Calastone managing director Australia & New Zealand.

Speaking to AB+F following the successful local onboarding of a “faster, safer and more efficient transfer of managed funds holdings across platforms," Hayward said technology - as enabler, disruptor or creator - is challenging the status quos within Australian financial services.

“This year, with technology so advanced and geared for scale, processes that underpin the financial services and banking sector really should be friction free. That goes for any sector, not just financial services," she said.

Calastone - a global funds transaction network - has announced several local fund managers, administrators and platforms are now signed up and logged in to Calastone’s Transfers solution, which automates in-specie transfers, accelerating the usually two-week transfer process to completion in under an hour.

“We’ve adapted the solution from our proven UK Transfers solution to suit Australian requirements and provide a unified and automated way of managing the transfer process, with more certainty and less risk,” she added.

According to Hayward, by working in cultural acceptance of ‘failure as part of success’, the company has been able to “overcome legacy and fragmentation” to onboard platform operators like BT and Macquarie - alongside major fund firms including Vanguard, Platinum, APN Property Group and BTIM - as the first adopters of the new process.

“We attribute much of Calastone’s success to the fact that our interoperable technology overcomes legacy and fragmented systems that can impede smooth transaction processes.”

Watching NPP closely

According to research by Tyro Payments, inefficiencies in transactions lose the average Australian SME some 20 days every year to friction in banking - equating to $7 billion nationally.

Hayward believes there is opportunity in this space for a proven solutions provider.

“While Calastone does not have a banking license, we are watching the NPP closely, to understand implications for our clients, and potentially consider how our technology can plug in to streamline related processes," she said.

“It is immensely exciting to see laborious and expensive processes that underpin Australia’s financial services and banking segment transform through automation to create efficiency, improve transparency and reduce risk.”

According to Hayward, Calastone creates enormous migratable efficiencies that suit regional financial networks where friction is most visible.

“Transferring a client from one platform to another, initiated typically by an adviser, involves a complex and manual exchange of signed forms at the platform, custodian registry and fund levels to allow holdings to move without a capital gains tax event or forcing the investor to exit and re-enter the market," she said.

“That is not a smooth process in anyone’s book.”

Capital Markets, Technology,
NPP, Calastone
Christian Edwards,
Article Posted:
February 09, 2017

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