Last week EY announced the launch of Tesseract, an integrated mobility platform underpinned by blockchain technology.
“Tesseract is a blockchain platform with smart contracting and at the moment the use cases are around what we're terming fractional car ownership,” EY spokesperson John Simmet told Accountants Daily.
“So fractional car ownership is where a group of people of maybe five or 10 can share the ownership of a car fleet. To do that they can invest in the fleet, they pay as they use, and if they've invested more than they use then they can get a return from the usage of others.”
Mr Simmet believes that the new platform will help differentiate EY from other firms for clients looking to move in to the growing mobility market.
“I think it provides us with a different position around the future of mobility. Mobility will affect cities, it will affect supply chains, it will be enhanced and developed by things like connected cars and autonomous driving and it will also be able to encompass things like new power trains, like electric or hydro cars,” he said.
“So basically, we're seeing more clients looking to us to do things with them as much as desk consulting and so the advice coming via working with them to realise new business concepts in the market and blockchain in terms of fractional ownership needs a platform which would enable clients to try out the concepts if you like in the market in very real terms and we can work with them to help them realise whatever they want to achieve.”
Mr Simmet said that the platform will also improve EY’s efficiency and also require upskilling of accountants to deliver advice to clients in the most suitable way.
“Blockchain has been really enhanced by smart contracts, which are self-executing, so it means that it can reduce the middle and the back office quite considerably and it can make the life for customers who want to take part in these services much, much easier in terms of both the access and the financial management,” he said.
“It’s a platform so its slightly different in terms of the way you deliver the advice, the way in which you help clients to develop and realise new things in market. I think speed is becoming important for a lot of clients to get to market, especially if they're in traditional markets at the moment and these new markets are opening up and this enables them to get in much more quickly and potentially with the risk much more managed than they could on their own.”