Infographic: blockchain applications in superannuation
The emergence of blockchain technology represents a potential breakthrough for superannuation funds and their members. The most appealling feature of blockchain is its ability to link multiple participants in a transaction or system. Blockchain has the potential to reform the way superannuation is administered and represents an opportunity to improve operational efficiency and customer service.
We need to understand where blockchain is most effective and where it does not apply. Our exploration of blockchain indicates that administrative inefficiencies, data errors and transactional errors in superannuation may become a thing of the past. By experimenting with less complex systems we can learn how to apply and innovate the technology to more advanced processes.
Funds need to have blockchain on their radar because the technology can potentially lead to significant competitive advantage including:
- Operational efficiency – makes administrative operations faster, more accurate, efficient and transparent.
- Reduction of cost – utilise efficient payment systems and bypass expensive payment networks.
- Minimise fraud – blockchain is considered highly effective against tampering, fraud or political control.
- No need to reconcile – share accurate records between two or more organisations and reduce data corruption.
- Systems consolidation – achieve operational simplicity, greater automation and faster transactions.
Funds and or trustees need to be considering the benefits of blockchain technology and starting a dialogue with trusted technology experts like QMV who have extensive systems and technology know-how in superannuation.
You may also be interested in Blockchain a silver bullet for superannuation.
Sebastian Amodio – Software Architect at QMV Solutions