Just as Uber revolutionized the transport sector by challenging the classic taxi model, tokenization promises to transform the financial sector, offering new opportunities for market agents who, until then, they were hostages of traditional systems and operated under restrictions imposed by centralizing institutions, like banks and brokers. These agents include investment funds, asset managers, investment advisory offices, securitizers and a small portion of fintechs
Especially in Brazil, funds usually turn to large banks and brokerage firms for the distribution and management of their financial products. Besides the bureaucracy and slow processes, that delay strategic decisions and harm performance, this limits your ability to innovate and imposes high costs, that are passed on to investors
Asset managers also face challenges, given that they need to deal with the custody of the assets, the management of funds and regulatory compliance, usually through intermediaries that impose fees and restrictions, limiting your flexibility and agility to explore other diversification opportunities
Furthermore, the increase in regulatory requirements by bodies such as the Securities and Exchange Commission (CVM), in Brazil, and the Securities and Exchange Commission (SEC), in the USA, imposes the need for constant updating and compliance, what can be costly and time-consuming. Moreover, the need to invest in new technologies, as artificial intelligence andbig data, it is crucial to maintain competitiveness, demanding not only high implementation costs, but also training and retention of qualified talents
Competition in the sector has also intensified with the increase in the number of management firms and the ease of access to information and investment tools, making differentiation in the market a constant challenge. Parallely, investors are increasingly informed and demanding, seeking sustainable and responsible investments, in addition to financial returns, what forces managers to adapt their strategies and product offerings
Another significant challenge is represented by historically low interest rates in many markets, what makes it difficult to achieve attractive returns in traditional fixed income investments. To face these obstacles and seize the opportunities, investment managers should adopt a proactive approach, investing in technology, staying updated with regulations and adapting their strategies to the new demands of investors
In turn, investment advisory offices are slow and have a complex relationship with banks and brokers. While providing personalized advice to clients, they are often pressured to promote specific products from those with whom they have commercial agreements. This can create conflicts of interest and limit the actions of advisors
As for the securitizers, that transform illiquid assets into tradable securities, lack financial institutions to distribute their solutions and often face barriers to accessing broader markets
Even fintechs, that emerged with the promise of disruption, they ended up integrating into conventional systems to gain scale. This led to the loss of part of its original proposal, making them dependent on the same intermediaries they promised to replace. The crisis of FIDCs is an example of how this integration can fail, generating results below expectations
The transformation with tokenization
Many entrepreneurs still seek the easiest path, choosing to integrate into the traditional molds of the financial market. However, tokenization offers a new approach, allowing these agents to uberize the sector and gain autonomy
Thus, investment funds can tokenize their structure in different ways, eliminating stages and reducing costs. Asset managers can expand their portfolio with tokenized assets, from real estate to startups, accessing newpoolsof distribution
Tokenization also enables advisory firms to play the role of structurer, the one who sits at the table with the borrower and negotiates like a broker. For the securitizers, she will simplify the process of turning illiquid assets into tradable securities, being the very offer panel, providing greater clarity and accessibility. This attracts a more diverse group of investors and reduces issuance and management costs
Therefore, just as Uber democratized access to transportation, allowing anyone with a car to become a driver, tokenization creates paving to give autonomy to those who were previously held hostage by banks and brokers and creates a new financial education for investors, making everything much more coherent and transparent. This transformation eliminates so many intermediaries from the structuring of an asset, in addition to reducing costs and bureaucracy, and increase the efficiency and transparency of the financial market
This paradigm shift expands the reach to a global base of investors and fosters the creation of financial products and services, driving innovation and competitiveness, in addition to benefiting companies in the financial sector, that can use solutions more suitable to their needs
