Most Promising Fintech Startup
Fixed-income traders have always had it harder than their peers who work with exchange-traded equity securities and mutual funds: every bond comes with hundreds of data metrics, with pricing, bond reference information, risks, banks’ proprietary inventories and client portfolio data spread across different data vendors and systems. Electronic trading platforms for widely-circulated government bonds in major currencies do exist, but there exists a gap for more esoteric instruments like corporate bonds and papers.
And unlike their digitally-enabled colleagues in equity and ETF departments, which are riding the automation wave and reaping efficiency gains, there is simply no ‘golden copy’ for bonds where all data can come together. The fixed income world is still largely copying and pasting day-to-day work into Excel spreadsheets and making trades through phone calls or emails.
In Asia, however, fintech firm Bondlinc is starting a quiet revolution in the bonds space by enabling information distribution and automating pricing, new issue book building and other manual, often repetitive processes.
Through landmark deals with Singapore securities brokerages Phillip Securities and Maybank Kim Eng, Bondlinc has digitised the way traders and their clients transact bonds, initially enabling the internal distribution of fixed income information and pricing to Maybank’s trading representatives and execution desks, significantly improving internal bond trading workflows and efficiencies.
Meanwhile, its white-labelled client application empowers Phillip Securities’ end clients through direct trading access. The mobile version of Bondlinc’s bond trading application keeps clients informed with the latest bond issuances, market news, and pricing. When clients want to act on market information, they have the power to directly reach out to their trading representatives—who are just a tap away—and execute a trade.
The impact Bondlinc is having on the market means that previously less-widely traded over-the-counter instruments can now be put on electronic trading platforms, and that banks and securities houses now have an array of options at their fingertips to build unique bond trading ecosystems around their available bond inventories—a truly impressive achievement considering the company was formed only at the start of 2017.
Bondlinc is Asian Private Banker’s Most Promising Fintech Startup of 2017.
“Brokers and wealth managers in Asia Pacific are increasingly looking for standardised and efficient solutions to bring fixed income to the same level of digitalisation as other asset classes, in terms of information distribution and accessibility, for their customers.
Our software-as-a-service platform allows those institutions to bridge this gap while helping their advisors to achieve greater productivity and supporting growing compliance requirements.”