Distribute mutual funds through the blockchain. Gimme5’s Word!

A come A will distribute mutual funds in Italy through the blockchain. This feature has been tested on Gimme5, the company’s app to invest and save starting from 5 euros; the first saving app interested in exploiting the blockchain.

Thanks to this new feature, Gimme5 will be able to carry out subscription and redemption transactions of mutual fund units and related payments in real time using smart contracts based on the blockchain.

AcomeA carried out the test through Fundsquare’s FundsDLT platform, based on blockchain technology, and through Fabrick‘s Open Banking platform. The positive result obtained shows that it is possible to simplify as much as possible the execution of transactions and that the blockchain is able to bring efficiency and cost-effectiveness in the processing of orders on investment funds.

To find out more, we interviewed the real protagonists of this project, two members of the Gimme5 team who work behind the scenes and are not often asked about the results achieved: the Lead Developer and the Gimme5 Data Manager. Fabio Arlati and Giuseppe Codazzi, tell us about this historic result and the first subscription of mutual fund shares in Italy through blockchain technology.

What exactly is the test you carried out?

The test consisted of the reception, valorization and registration of transactions for the purchase of fund shares exploiting the potential of FundsDLT and Fabrick. This allowed Gimme5 to test a cheaper, faster, more efficient, and, thanks to the very nature of Smart Contracts, certified process.

What does it mean for the fintech sector?

Apart from the obvious technological and innovation aspects, the most important achievement is the collaboration with Fundsquare and Fabrick. With the success obtained, we have demonstrated that fintech can be a concrete sector with strong cooperation between the parties, benefitting the industry itself and its customers.

In Italy, our test it is the first one, but in Europe, several European groups operating in the asset management sector have already conducted similar experiments with FundsDLT; however, it is the first time in Europe that more players in the fintech panorama have been involved.

What benefits will it bring to users?

As this is the first test, the timing of approval and change will be long because it is necessary to innovate also in terms of process management. The first advantage will certainly be the level of usability of the service. The user will be able to enjoy an alternative and more efficient purchase method, which can be completed in a shorter time period. Furthermore, there is the argument of costs: Gimme5 has already cancelled or reduced all costs to a minimum, including operational costs. This lighter infrastructure will further increase the benefits for our customers.

How will your business change after this result?

Undoubtedly, the use of such a model can guarantee Gimme5 to exploit an increasingly efficient infrastructure, both in terms of process management, times, and costs. Moreover, the fact that all three players involved want to be platforms speaks volumes in terms of future objectives. Gimme5 has always been in favour of opening up to new partners and also to new markets: we have international aspirations.

What were the strengths of the collaboration with the other two platforms? And the most critical aspects?

The strengths are certainly linked to cooperation. Each one of us brings the best to the entire supply chain, making the process more efficient in all the aspects. In fintech, there is a real opportunity to work as a team and I believe that this has already been an excellent starting point.

There were no particularly delicate moments. Of course, there was a lot of attention for the timing. In projects of this kind, with three players involved, each one rightly had its own objectives and priorities. It all started almost a year ago, we have come a long way since then and will certainly continue to do so.

Are you looking for any information about Gimme5? Read the interview with product manager Flavio Talarico 

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Author: Fintech District

3 April 2019



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