New Jersey-based Fidelity Financial Services (FS) is launching its financial management solution on the blockchain for financial management.
The digital platform, called Fidelity SmartFinance, will offer a suite of tools that will help clients manage their investments, manage their retirement accounts and manage their finances in a more efficient and cost-effective manner.
Fidelity SmartFi has been designed to make financial management easier for the average investor.
The platform will allow clients to monitor and manage all of their investments on a single platform, with no more than five different advisors.
“We are looking for a blockchain-based solution to simplify financial management,” said Chris N. Cascio, Fidelity executive vice president of innovation and technology.
“This solution will help our clients save time and save money, while giving them access to more information and access to financial services.”
Fidelity is working with Digital Currency Group to develop the platform, which will be available as a beta for the first time in 2018.
“With our partnership with Digital CIG, we are building a platform that will give our clients more access to the best financial advice and technology, and to their money, without the hassle of dealing with an expensive, complex and time-consuming compliance process,” said Cascia.
“The platform will be used by our clients to manage their accounts, investments, and retirement portfolios in a way that will maximize their potential,” he said.
“The goal is to enable investors to access financial information in a cost-efficient way, while providing access to a wide range of financial services.
This will be a great complement to our existing products, which include our proprietary and blockchain-centric platforms for mutual fund management, tax-advantaged 529 savings plans, 401(k) plans, and IRA accounts.”
Fellow Fidelity subsidiary, Vanguard, is also collaborating with DigitalCIG.
The two firms are working together to develop a blockchain platform that can allow investors to manage assets, including their money.
“Vanguard is working on a similar blockchain-focused solution that we believe will help Fidelity and other financial advisors provide more transparency to investors, and better serve them,” said Jason R. Tabor, senior vice president and general manager of the Vanguard Asset Management team.
“Our partnership with the DigitalCig team has created a blockchain application that will allow for greater transparency and better engagement for our investors and their advisors.”
The blockchain technology is described as a peer-to-peer network that can connect the entire financial ecosystem.
A blockchain is essentially a shared database, where each person has access to information on all of the transactions on the network.
DigitalCigs blockchain is used to enable financial advisers to monitor assets and investments, including money held in retirement accounts.
Fifty-six percent of American adults have at least one IRA account and about 70 percent have at one point invested in a 401(K) plan.