aXpire’s CEO, Gary Markham, opines on the update badly needed in the traditional RFP process:
Any institutional asset owner that’s gone through the Request for Proposal (RFP) process for hedge funds and private equity firms to apply for a mandate to manage their money knows just how long, complicated, and painful the process can be. From gathering requirements and drafting the proposal to communicating with and soliciting proposals from alternative investment firms, most people involved in the process are left coming away with the feeling that there has to be a better way.
The alternative investment world might not yet realise it yet, but it needs blockchain solutions for the RFP process.
RFPs are costly and time consuming for a variety of reasons. For those drafting RFPs, putting together a document that accurately reflects the scope of the project is a heavy task in and of itself. Much less sifting through responses that are formatted and presented often in dramatically different ways. Nevermind that actual process of fielding bids, reviewing pricing terms, and actually selecting the right vendor.
Well, things are about to change drastically (for the better) thanks to new technology applications designed to streamline the entire RFP process for everyone involved. The underlying architecture of popular cryptocurrencies like Bitcoin, known as the Blockchain, is now being applied in unique and practical ways to make RFPs faster, easier, and more secure.
The alternative investment world might not yet realise it yet, but it needs blockchain solutions for the RFP process.