Broadridge Financial Solutions, an IT solutions provider and Banco Santander, a Spanish banking group have successfully tested and completed trials on the use of blockchain in investor voting during Santander’s annual general meeting (AGM). During the voting process, blockchain was utilized to promote transparency, increase efficiency and enhance security.
Santander has worked in close collaboration with Broadridge to optimize the technology and ensure it works well in the corporate voting environment. The platform is built on Quorum blockchain and is expected to enhance transparency, encourage voter turnout and also include institutional investors.
Record Turnout and Increased Efficiency at AGM
Leveraging on blockchain meant that the participants had the advantage of witnessing the outcome of the voting in a shorter time frame as opposed to traditional models. Usually, verification of the voting process and announcement of results would take up to two weeks. The usage of blockchain technology also encouraged more participants to avail themselves for the voting process. According to records, the voter turnout was record-breaking at over 64%.
Patricia Rosch, President of Investor Communication Solutions at Broadridge had this to say:
“The successful completion of this pilot program shows our commitment at Broadridge as a top innovator and leader in global proxy. We intend to continually test and improve on new technologies such as blockchain to ensure that we place our clients ahead when it comes to issues of corporate governance”
Sergio Gamez, the head of Investor Relations at Banco Santander, said:
“AGMs are the most important events for any corporate entity. Using Blockchain at our AGM has helped improve the transparency of the voting process within Santander.”