Kamlesh Kangya: “With Blockchain, Financial Intermediaries Will Be Gone”
7Seconds’ advisor Kamlesh Kangya discusses the blockchain element in 7Seconds’ solution and the company’s prospects in the Asian markets.
Q: Could you talk a little bit about your background?
A: I’m a finance professional. I have more than 25 years of experience in that field. I did my bachelor of commerce in Bombay, India. Then I became a chartered accountant, or what is called CPA [certified public accountant] in other countries. I worked for companies like Hyatt, an American chain of hotels, and Oracle, a software company. I also worked with Siemens Industry Software and FIS, a fintech company that provides software and solutions to such banks as Bank of America and Barclays.
Q: At what point did you get interested in blockchain?
A: I was hearing a lot about bitcoin and I gradually came to understand what blockchain is, how it works and how it can support businesses, like fintech companies or real estate firms, how it could disrupt the current financial services and remove intermediaries. About a year ago, I began being enthusiastic about blockchain and how it could help businesses.
Q: What are the prospects of 7Seconds’ solution in the Asian market?
A: There are a few countries that are developing and a few countries that are developed already. There are countries like Singapore, Hong Kong, Korea, Japan, Australia and maybe China. Those are the developed countries where you could use the technology. And there are developing countries, like Indonesia, Malaysia or Vietnam where there is a retail boom. So, 7Seconds could develop a business in those countries. In terms of investment, 7Seconds could target the developed countries. Although there are competitors to 7Seconds, for instance, in Singapore, there is a lot of space for other companies, as well. 7Seconds is already in business, so it would be kind of a jumpstart. It has an edge because the company is already up and running. Such countries as Singapore or Hong Kong have very open economies, they always welcome new technology. If 7Seconds launches in Singapore now or in near future, it could be a well established company in couple of years. Singapore is a gateway to Asia Pacific, and the government of Singapore is very open, helpful and also provides incentives on setting up of offices in Singapore. So, in a couple of years, it would be good for 7Seconds to have its feet on the ground in Asia.
Q: What do you think about the application of blockchain in 7Seconds’ solution?
A: Blockchain technology allows 7Seconds to create borrowers’ credit records that are immutable and cannot be deleted even by error. These data about borrowers could be used for analysis of credit ratings. And these data will be available to banks, so they can use them to make decisions about issuing loans to customers who want to buy products.
Q: What are the main challenges in implementing blockchain-based solutions these days?
A: One of the major challenges is security. There have been incidents in Japan, for instance, where millions of dollars were taken away and only part of it was eventually recovered. So, if you can ensure security, the only other challenge I see is that not enough people know about blockchain. And there are reasons for it. Banks have their own infrastructure, and they have invested heavily in their IT infrastructure and architecture. But with blockchain, those financial intermediaries will be gone. So, they wish that blockchain doesn’t happen because all their infrastructure will become obsolete. There are many people who don’t know about blockchain or they don’t want to know because their revenues and comfort are at stake. We need to educate people on blockchain, on how it works, on what the benefits are and how much money they can save thanks to it.
