Painpoints

What pain points does LedgerSwarm address:


Lack of Ledger Co-ordination

  • Financial Institutions maintain multiple ledgers which receive independent updates from both internal and external systems – there is no co-ordination between them. It is common for financial institutions to have in excess of 100 ledgers covering multiple business units and geographical locations.

High Running Costs

  • Each financial institution employs teams of people to investigate and resolve reconciliation breaks between ledgers. The cost of this effort equates to many millions of dollars per year

Legacy Systems

  • Many financial institutions use legacy systems to manage their ledgers, which are outdated and difficult to maintain. These systems can be slow, cumbersome, prone to errors and often require specialist skills to maintain. For example some investment banks are still utilising ledger systems introduced 40 years ago.

Hard to adopt new technologies

  • Financial institutions are starting to explore integration with new distributed ledgers which can be challenging when integrating with their current ecosystem. PwC in 2020 found that more than 80% of global financial institutions are exploring DLT and its potential use cases, far fewer have it working in production.

Scalability

  • As financial institutions grow, expand and merge their businesses, their ledger requirements also increase. Issues occur when their current suite of ledgers can not scale or accommodate the required levels of growth

Compliance and Regulatory

  • As new ledger protocols are introduced there will be an increase in the compliance and regulatory requirements surrounding these to ensure that institutions comply with these requirements. For example the CFTC, the SEC and the UK's FCA are all consulting on the regulation of Digital Assets


Why Implement LedgerSwarm now?

Competitors

  • Various banks and financial institutions are exploring and tentatively starting to utilise new ledger technologies proving that it is the future and will, given time, be adopted at scale.

Customers

  • As other institutions start to see the advantages of the new ledger technologies so will their clients and customers. This, in turn, may see them move some or all of their business to institutions which can offer these benefits.

Risk Reduction

  • Given the nature of new ledger technologies there will be less operational risk in the settlement cycles therefore benefiting all parties within a transaction.

Cost reductions

  • As margins tighten across the industry, implementing a Ledger Solution which allows operational processing costs to be reduced will make a significant impact at both an organisation and business unit level.