Swift Advances Project CALM to Modernize Corporate Actions with AI and Blockchain

• Swift’s Project CALM uses AI and blockchain to streamline corporate actions and reduce manual work.
• Project CALM will address data fragmentation and improve accuracy across corporate action processes.
• Swift’s initiative aims to automate corporate actions with AI and blockchain for faster data distribution.

Duygu Kaya, Swift’s Capital Markets Strategy Director, has stated that Swift is advancing projects, including Project CALM, to streamline corporate actions using AI and blockchain. The target is to resolve persistent problems in data fragmentation along with manual handling processes. 

Traditional processes for corporate actions regarding dividends, mergers, and stock splits have consistently faced numerous obstacles. The system currently faces three major problems which stem from delays, inaccurate information, and complex data processing requirements. 

Solving Fragmentation and Manual Processing

Corporate actions integrate data that originates from issuers and custodians. Multiple data sources employ distinct communication methods as well as different system formats for data exchange. Data fragmentation occurs because of multiple data sources which necessitates manual reconciliatory work. 

The entire process requires substantial time while it frequently produces errors. These circumstances create the potential for stakeholders to overlook essential entitlements and claims. 

Project CALM seeks to solve these issues by using AI and blockchain technology. AI can automate data extraction and standardization. Blockchain can ensure the accurate and timely distribution of data. This combination will reduce manual work and improve efficiency. It can also help to ensure that data is consistent and up-to-date across all systems.

Why Corporate Actions Need Change

Despite technological advances, corporate actions still face inefficiencies. A recent study by ValueExchange found that 75% of investors in high-growth markets still rely on manual processes. These methods not only add risks but also slow down operations. The volume of corporate actions is growing, and the current systems are struggling to keep up.

Many existing solutions focus on specific tasks, but they do not address the whole process. Project CALM, however, aims to improve the entire corporate action workflow. The project will standardize data and communication. It will also help connect traditional and digital assets more effectively.

Early Success and Future Goals

The first phase of Project CALM has already shown positive results. Swift has used AI to extract and standardize unstructured data. Data is distributed across blockchain networks through which stakeholders get real-time access to the same accurate information. Through this approach the project ensures every stakeholder gets access to precise shared data. 

In the future, Swift plans to expand Project CALM. It will include more stakeholders and address more complex corporate actions. The project will also explore how blockchain can help create a unified record. This will improve data flow across different systems.