Superannuation ripe for blockchain

Australia’s $2.7 trillion superannuation system has a lot to gain from adopting distributed ledger technologies (DLT), but the industry will want more clarity around blockchain applications before it jumps in.

Bravura Solutions global head of wealth management product Michelle Lusty says blockchain and DLT will find success in wealth management once they begin to offer a compelling business case while improving inefficient links in the value chain.

“In core superannuation admin the margins are not excessive, so you have to look across the value chain for opportunity within the margins.

“Where DLT could potentially make a positive difference is in superannuation investments. Within super, there’s a fund structure that invests in underlying assets, Lusty says.

The investment side has voluminous transactions that need to verify data by multiple parties, so there’s an opportunity there, she adds.

Lusty’s comments come as financial services leaders gear up for the annual Sibos conference from October 22 to 25 in Sydney.

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Source: Superannuation ripe for blockchain | Financial Standard