Santander and Broadridge completes their first practical use of blockchain for investor voting
One of the largest bank in Eurozone, Spanish banking group Banco Santander and global Fintech leader Broadridge Financial solutions announced the completion of first practical use of blockchain for investor voting at the annual general meeting (AGM).
By implementing distributed ledger technology for solutions, will enhance the global proxy vote transparency and increases operational efficiency, security and analytics, which is beneficial for investors, issuers, agent banks and custodian banks.
On March 23rd, the pilot was run in partnership with Fintech company Broadridge as well as J.P. Morgan and Northern Trust as custodian banks. Santander's blockchain lab and Banco Santander Corporate Services as the issuer's agent also participated.
Luis Antonio Perez, head of Corporate Services at Banco Santander, said, "The blockchain technology has enhanced efficiency and transparency upon the reception and vote tabulation process, which will result in bridging the gap between all in the process.”
When compared to the conventional voting system, investors could witness that the current platform proved to be faster while counting the votes by implementing blockchain technology. Santander stated that the participation for the latest platform equivalent to 21% of the total that participated in the AGM, Santander said.
Sergio Gámez, global head of Shareholders and Investor Relations at Banco Santander said, "The Annual General Meeting is one of the most important corporate governance events for any listed company. In the case of Santander, having very fragmented capital, it is very important to ensure the participation by investors and shareholders, and this year using blockchain technology for the institutional vote has been a great help in terms of transparency and agility across the vote lifecycle.”
Image source: PRNewswire