The business development in Latvia is difficult to imagine without financial technologies or FinTech. Currently every successful and sustainable business is based on technology. FinTech certainly also means more competition for everything traditional. The most important is to be able to apply these technologies in a way to provide additional value to customers, since it determines the success of the company.

Since the early days Nasdaq has driven change by technological innovation challenging the existing. This shows in the first electronic stock exchange we created and since then we have introduced countless innovative solutions to help our clients succeed in financial and capital markets. The spirit of innovation still is alive in us - this is proven also by the blockchain solutions in private or closed issue securities market introduced by Nasdaq, thus becoming one of the first FinTech companies that have implemented the promising blockchain technology in reality.

Continuing the innovation of change, Nasdaq is currently developing a pilot project for electronic voting system in Estonia based on a blockchain platform so that shareholders and investors could participate in the general meetings of the listed - and other - companies. Shareholders who are residents or e-residents of Estonia will be able to participate in the corporate management of the listed companies in a much easier and secure way. Blockchain technology will allow quick and secure registration of votes, thus significantly improving the voting process which has been a laborious and fragmented process up to now.

Providing shareholders an easier and more secure participation in the general meetings of companies and voting is not just a matter of convenience or security. This interaction is a new model in which shareholders may collaborate with the company management and build the future of the business. By making the e-voting more efficient and secure, which is the aim of the blockchain technology based solution, the involvement of shareholders in the management of the company is promoted. As it is well known, good corporate governance has a significant impact on increasing company’s competitiveness, performance and efficiency. In turn, an effectively managed company is able to faster increase the long-term growth of the company’s value.

Many financial specialists foresee a great potential for the blockchain technology, therefore considerable investments are being made. The largest banks and also the largest monitors have already researched these opportunities in depth. If the direction of development will persist, we will experience a new value-based level of financial services with the help of FinTech and creation of new solutions to entrenched problems and increasing the value of the business. Also Latvia and the Baltic States have the necessary prerequisites for such development.  

Indars Aščuks,

Chairman of the NASDAQ Latvian Central Depository Board