Imagine the young child saying goodbye to their parent at the start of the day. From a childish perspective, it doesn’t matter where mummy and daddy go – as long as they come back.
Have you ever wondered about the incredible journey our dollars go on after we decide to make an investment? Perhaps it doesn’t matter what the journey is, so long as they come back, and ideally with some friends!
Ryan Johnson-Hunt is the co-founder and CEO of DSG, a startup that aims to improve capital markets infrastructure and bring digitised securities (like shares and bonds) to mainstream traditional finance.
Do capital markets need improving? Well, that depends on who you ask.
I think about it this way: A mere half-century ago, a commute that now takes minutes could consume an entire day. Just as rails would have accelerated our pace of life relative to the horse-and-buggy, emerging digital infrastructure promises to get more of our dollars, working at a faster speed. New rails help us get places faster. The less you spend in the process of buying and selling, the more of your dollars can be at work for you at any given point in time. You’ve heard this in relation to fees, but I feel the conversation needs to go deeper, and consider the legacy institutions that can now be made redundant.
Banks, foreign exchange, custodians, clearinghouses, and disclosures – all under the watchful eye of the guardians of the financial galaxy.
The traditional financial system is designed to ‘keep us safe’ from harm, but it also protects an age-old industry, in desperate need of a bottom up, digital transformation.
Traditional investing is getting better in the same way our cars are getting faster. The time it takes to settle transactions is shortening, better digital wrappers help with customer onboarding, and slicker user experiences helps with investor engagement. We’re still limited though, by the rails we’re travelling on.
Blockchain-powered technology will completely transform the way we invest. Fund managers may snicker and choitle, there may be ongoing resistance to open banking, accounts may be refused to blockchain/crypto start-ups, or pressure from regulators may be applied to preserve the incumbents patch in other ways. At some point, this train, is leaving the station.
Today’s episode is essential for everyone, whether you’re new to investing or have years of experience. Ryan and I will clarify how capital markets function and how they’re changing. The future of investing is closer than you think, and it’s crucial for everyone in the finance sector to pay attention.
