Hezhong Group does not trust banks to seek block chain help


nnnTracing: The well-known private equity firm, Partners Group, recently questioned the ability of banks to protect information security and revealed that block-chain technology was being used to track their investment transactions. The company believes that the block chain can not be tampered with the characteristics of the transaction to ensure that it is an effective solution for security, and look forward to the technology applied to other business.n
nnTranslated by: Inan
nPartners Group, one of Europe’s largest private equity firms, is using block-chain technology to track its large investment transactions as they become increasingly distrustful of the ability to protect information security on banks.n
nAndreas Knecht, the chief operating officer of the $ 66 billion investment giant, told Financial News that he was “uncomfortable” with some of the record-keeping services provided by big banks, which he thought was prone to cybersecurity loopholes And fraud.n
nKnecht said:n
nn”Suppose we make a major investment to pay more than $ 1 billion in checks, so we certainly want to make sure that the bill will not be changed.”n
nnn”Regulators and our customers are increasingly concerned about cybersecurity, which is a very important issue.”n
nnThis initiative raises new questions about the ability of banks to monitor and combat cybercriminals.n
nHezhong Group is now using payment books to support the stack of books to send payment bills. In order to maintain its confidentiality, the company will provide specific numbers to the docking bank so that it can use it to access the books to view detailed information about the payment.n
nKnecht said:n
nn”Obviously, we do not want others to see who we have opened a $ 1 billion check, so we will not store this information, which is why we only open the amount.”n
nnKnecht said that the consortium is using the chain chain “one day for multiple transactions” and may apply the technology to other business areas.n
nThe company is one of the first private equity firms to use block chain technology. As the technology may make the post-transaction function more cost-effective and rapid, it has in recent years has been some well-known banks and fund management companies of all ages.n
nIn February, Northern Trust has partnered with IBM and Swiss asset management company Unigestion to create a chain of funds management.n
nThe private equity industry is still dependent on a large number of instruments that use PDF, Excel spreadsheets and e-mails to communicate with investors, fund managers and bank managers.n
nAccording to Knecht, this is no longer safe.n
nn”It still needs a lot of PDF files and autographed, and then send it everywhere.Now, e – mail is no longer the safest channel, and PDF can not be changed the day has long ended.n
nnHe said that although the consortium and its investors did not have been fraudulent to the wrong bank account to fight money experience, but this is “absolutely possible situation.”n
nAccording to a report from the Lloyds Group, cyber attacks resulted in global business losses of up to $ 450 billion in 2016. The block chain is considered a safer transaction record because it can not be changed once the information is recorded on the book, making it a reliable way for both parties to trade information.n
nKnecht also points out that the “big difference” between private equity and other forms of investment is that the deal is not carried out through the central clearing house. He said:n
nn”As chief operating officer, I am interested in making the private equity market closer to the open market, as the more concessions we offer for investors, the greater the growth potential of the market.”n
nnHezhong Group declined to disclose the cost of using the new technology or the cost of using it. Knecht said:n
nn”We are watching their development, hoping to improve the security of the transaction, and now the focus is not on cost savings.”n

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