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Streamlining the investment process – the power of a digital settlement system
July 06, 2023

In the dynamic world of finance and investing, electronic settlement systems have emerged as a game-changer, revolutionising the way businesses conduct share transactions.

“Delivery-versus payment” settlement systems reduce the risks associated with share transactions but are generally only available to businesses conducting large transactions, either through a licensed stock exchange or through a central bank.

Catalist, the only licensed stock exchange designed for small- to medium-sized enterprises (SMEs) in Aotearoa, New Zealand, strives to significantly reduce the pain points traditionally associated with share transaction processes. With the use of a government-approved electronic transfer system, Catalist ensures that the entire process remains seamless and efficient, providing both investors and SMEs with a user-friendly solution for managing their investments, and reducing risks associated with settlement of share transactions.

Eliminating Manual Processes

One of the common challenges faced by SMEs when issuing new shares or managing transfers between investors is the need for manual actions and traditional signed documentation at various stages in the process. While other platforms may offer investor leads, businesses are typically left to handle follow-ups and investment documentation paperwork, manually inputting investor records into their share register after completion. This is often time-consuming and prone to human error. Catalist sets itself apart by streamlining the entire process online, from start to finish. This means that businesses can focus on building relationships with investors, while the Catalist platform takes care of the completion of electronic transactions.

Efficient Investor Engagement

Engaging with investors is crucial for SMEs looking to secure capital or facilitate efficient secondary market trading. Catalist recognises and values the importance of maintaining effective communication channels between businesses and their investors. When an investor is ready to invest, Catalist guides them through a user-friendly process that ensures compliance with NZ laws and regulations. By managing the online commitment and securely receiving payments into a trust account, Catalist ensures transparency and trust throughout the transaction. This seamless integration allows businesses to engage in meaningful conversations with investors and remain confident that the investment process is being handled and managed efficiently.

Automated Updates of Records

Keeping track of share ownership and maintaining accurate shareholder records can be a daunting task for SMEs, though it is extremely important that shareholder information remains up to date. Catalist simplifies this process by automating share register updates, seamlessly integrating them with completed transactions made through our platform. As investors complete their investments through Catalist's electronic settlement system, the company's records are automatically updated, reducing administrative burdens and the risk of human error. This enables SMEs to focus on their core operations while ensuring accurate and up-to-date shareholder records.

For SMEs in New Zealand, Catalist's electronic settlement system is a game-changer in the realm of financial product transactions. By offering a user-friendly platform that manages the process from start to finish, Catalist eliminates the difficulties associated with manual interventions, ensuring a streamlined and efficient experience. The system empowers businesses to engage with investors effectively, simplifies the investment process, and automates the updates of records. With Catalist, SMEs can navigate the complexities of share transactions with confidence, allowing them to focus on driving growth and innovation in their respective industries.

If you are a small- to medium-sized business looking to improve the experience for your investors, we would love to introduce you to the only licensed stock exchange for SMEs in the country. Get in touch today here!

By Michelle Polglase & Catalist team