Technology Integration in Bullion Vaulting and Logistics
Context
In an industry that requires a highly secure, error free and compliant performance with real-time updates, the choice and execution of the right technology becomes paramount.
By now it is fairly clear and apparent that in the context of Bullion vaulting and logistics, technology aides immensely in asset monitoring, tracking and securing. There are many credible and stand-alone tech options available in the market for some of these routine monitoring and recording tools.
However the real challenge comes to fore when one wants to perform real-time verification and intervention while the physical transaction process is underway. This next frontier of real-time intervention is a real game-changer, as it helps mitigate risks and errors from happening in the first place.
mplementing such a system cannot be achieved by just investing and installing a bunch of disjointed hardware and software. It requires a holistic approach, including participation from various key players in the value chain.
Data Island
Traditionally, the bullion sector has and continues to rely heavily on manual processes that includes handling physical documents, verification against manual authorization letters and registers, physical certificates, packing list, release / delivery order etc to name a few. At best, some of these physical documents have evolved from physical paper to PDFs and shared via emails, which is actually still ‘manual’ from a digital exchange & intervention standpoint. Even the use of highly secured and time-tested information exchange formats such as encrypted QR Codes and secured APIs are yet to make its way into our sector in a significant manner. Imagine the speed and accuracy with which a vault manager or the consignee can verify and receive a bulk consignment, if information were to be available in a such secured, digital formats.
Physical Processes with Digital Oversight
Given where our sector is currently, and as we collectively aspire to harness the plethora of technology options available in the market today, to fortify the internal processes and controls, the suggested approach would be to:
1. Securely digitize the information that is received manually.
2. Simplify and streamline the existing physical steps and processes.
3. Select not just the right tech product, but the right tech partner.
4. Integrate the physical process with the appropriate tech stack.
Such integration not only streamlines the operation in terms of speed and accuracy, but also provides long-term cost optimization in real and tangible ways.
Reimagining Vaulting
Nothing can symbolise physical security more than a fortified Vault made of thick concrete and metal. However in the modern context, this is just the beginning. Subsequent layering of this physical fortification with multiple and integrated digital security is vital. At Sequel Logistics, our focus is to constantly work on designing and implementing multiple layers of physical and digital security, over laid on existing infra.
From the end-user (asset owner’s) standpoint, use of certain existing and proven technologies has the potential to transform the audit processes. What takes hours in manual counting and verification can be accomplished in a few minutes with digital precision. Artificial intelligence has significantly transformed the video analytics space, by alerting and aiding the command centre monitoring, with its ability to identify unusual or unauthorized movements in sensitive areas. Vaults today are no longer passive storage units, but are evolving into an active technology-enabled custodians.
Client Experience and New Opportunities
echnologies that enhance real-time capturing and sharing of transactions (or critical milestones), significantly enhances client experience. Our platforms today allows clients to securely access ‘near-real-time’ updates, access documents and reports, and track their assets.
The integration of digital vault accounts with the exchange and fintech platforms, are creating new and exciting opportunities for companies and their customers to view, trade and collateralize their bullion assets, without having to deal with or worry about the physicals.
Given how Gold and Silver have reclaimed its rightful place as a leading asset class, both legacy and new-age companies have already started to harness this opportunity by partnering with Sequel Logistics as their secure, phygital custodian.