Dialogues In Digital Transcript
Javaid Iqbal: Arshad, great talk at the FinCrime Symposium, where you shared excellent insights on where the industry is heading. Now, I would like you to explain what this crypto and virtual asset game is all about, and what do users need to know about it?
Arshad Khan:This is a simple game, there isn’t anything different. We are doing similar things differently, with respect to our technology and opinions about the same kind of investment products. It has some challenges because of the increased regulations that used to exist. Now, we are expanding towards more industries and more regulations are coming in, making things more safe and secure for the end investor to benefit from.
Javaid Iqbal: So, do the end investors understand all this?
Arshad Khan: Yes, but as I told the audience, you must do your homework, which is a very complicated one. Just do a google search, where you will find many advisors right for your particular use case. They can highlight many things, from basic information on how to take an investment decision, to how you can commit your investment, and grow your wealth.
Javaid Iqbal: And, what does this mean for existing banks and those of the future?
Arshad Khan: For the entire financial market sector – which includes banks and capital markets – this is going to be a big game changer, and I see it having a great impact on three verticals primarily at this stage.
The first is the money remittance business where the big change is coming because of Blockchain technology and digital assets built on top of that, such as cryptocurrencies, which are being very beautifully utilized for ensuring money remittances. That’s because they don’t take too much time, aren’t very expensive and are safe.
The Second vertical in the financial markets is the raising of capital and capital investment activities. This is again going to change the game, which we are now starting to see happen. All your real estate or traditional assets are getting converted into digital securities, which are then getting traded in the markets. The same kind of digital securities are being used to raise money and that is the way in which the democratization of the financial ecosystem comes into play. There is so much of participation that can be generated because of the upswing of the brilliant technologies that we have as a bedrock.
Third vertical, as you said, is the banking industry. Already, we are hearing a lot of things concerning digital banking and branchless banking which I believe is going to be the future. The existing conventional banks are tearing themselves up to get into that space. On the other side, we have new entrants with no background who are coming up and taking the whole market.
So those are the three verticals that I see being impacted at this stage, and I am sure that at the rate this technology is evolving – we sleep with one thing and wake up to another thing – many further verticals will arise. Every vertical of financial services will be impacted massively.
Javaid Iqbal: A lot of this is technology-based and there’s undeniably a dark side to technology as well, especially with regards to financial crimes. How do you see that impacting, and what do consumers, banks, regulators need to be wary of if they want to build policies, and use and secure these technologies?
Arshad Khan: Since we know that technology can be used for good purposes and for bad purposes, we have a responsibility of securing the digital systems, particularly, the regulators and the government agencies, and come out with the right regulations that cover this dark side. That’s where we are looking forward, quite heavily.
I am not saying it just for the sake of saying it, since we have made really good progress in terms of where we were a year or a couple of years back and where we are today, in terms of sophistication of ensuring the stability of the system. Not only that, but also from a regulatory point-of-view, the ecosystem is being built in a very transparent manner, where we know the rules, who has done what in the past, and what will be done to protect the market in the future.
Javaid Iqbal: Interesting times ahead and a lot more to be seen. Thank you for talking to us and good luck.
About the speaker(s)
Arshad Khan is the Co-Founder & CEO of Arabian Bourse, about to become the first fully regulated crypto asset exchange in the Middle East. He has extensive experience leading organizations in collaboration with regulators, exchanges and clearing houses in the MENA region and routinely appears at global conferences on all things finance.
Javaid Iqbal is the Co-Founder & CEO of TransformX. He has previously served as a Customer Success & Engagement Leader at Salesforce and held various leadership positions at multiple consultancies including EY and PwC where he spearheaded large-scale complex business transformation efforts for global Fortune 100 clients and Federal & State and Local governments across North America, Europe & Asia.
About Dialogues In Digital
The rampant pace of technology and its impact on the environment often makes it near-impossible to take a breath and realize the countless upheavals affecting organizations, industries, and societies in real-time. Events and breakthroughs with widespread repercussions can go unaccounted for and their potential lost forever. TransformX’s Dialogues In Digital Series is one attempt to assemble business leaders from a wide cross-section of industries and geographies to share their insights on such disruptive developments and highlight the role that key stakeholders in the leadership ranks can play in their sphere to become a crucial cog of their industries and ecosystems. Catch these conversations on our YouTube channel and follow us on our social feeds for the latest and greatest in the world of digital innovation.