A Dig­i­tal Fu­ture With Blockchain

Blockchain tech­nol­ogy is be­ing adopted across the world by fi­nan­cial ser­vices com­pa­nies, in­clud­ing LuLu Fi­nan­cial Group. Man­ag­ing Di­rec­tor, Adeeb Ahamed, is lead­ing the trans­for­ma­tion.

Forbes Middle East - - LULU FINANCIAL GROUP -

There has been an ev­i­dent up­roar over so­cial me­dia be­he­moth Face­book’s re­cently un­veiled plans for a new cryp­tocur­rency called Li­bra. In mid-July, Face­book of­fi­cials met in front of a U.S. con­gres­sional com­mit­tee to dis­cuss the new de­vel­op­ment, while Switzer­land’s pri­vacy watch­dog had sought de­tails about the Swiss-based cryp­tocur­rency project. The take­aways from the hear­ing pointed to­wards the risk af­fil­i­ated to the global fi­nan­cial sys­tem on in­tro­duc­tion of such a sys­tem.

While spe­cial­ists have long voiced con­cerns re­gard­ing the risks of dig­i­tal cur­rency, the so­cial me­dia gi­ant is hop­ing the new ad­vance­ment will give a new lease to its fu­ture. Face­book hopes that Li­bra, not­with­stand­ing the cur­rent scru­tiny, will be sup­ported by es­tab­lished govern­ment-backed cur­ren­cies and be ac­cepted as a form of pay­ment, when it is launched in 2020 or later. Face­book also plans to launch Cal­i­bra, a sub­sidiary that will de­velop prod­ucts and ser­vices based around Li­bra.

Mean­while, the un­der­ly­ing tech­nol­ogy of it all— blockchain—has been gain­ing trac­tion across sec­tors, as was ev­i­dent from its cen­ter stage dis­cus­sions at global events. Blockchain tech­nol­ogy is be­ing adapted for every­thing from data col­lec­tion to health­care and even gov­er­nance.

Adeeb Ahamed, MD, LuLu Fi­nan­cial Group, agrees that blockchain will have a big­ger role in the fu­ture, “Speak­ing to tech dis­rup­tors and fi­nan­cial heads at the World Eco­nomic Fo­rum ear­lier this year in Davos, I firmly believe that blockchain will be the fu­ture in terms of how we do trans­ac­tions. Some of the most im­por­tant ben­e­fits of blockchain would be im­prov­ing se­cu­rity of the data, re­duc­ing costs and ac­cel­er­at­ing in­te­gra­tion. The in­for­ma­tion in a block can­not be al­tered, as each block con­tains a time­stamp and a link to a pre­vi­ous block. This highly im­proves se­cu­rity while deny­ing du­pli­ca­tion.”

The global blockchain tech­nol­ogy mar­ket is an­tic­i­pated to reach $16.82 bil­lion by 2026. With trans­ac­tions be­ing con­ducted over a net­work, it is dif­fi­cult to tam­per with a blockchain trans­fer. Blockchain also elim­i­nates the need of third-party ver­i­fi­ca­tions since the ledgers are shared by all the par­ties over the dis­trib­uted net­work.

Blockchain tech­nol­ogy is cur­rently be­ing adopted by fi­nan­cial in­sti­tu­tions due to ben­e­fits such as re­duced in­fras­truc­tural costs for rec­on­cil­ing state­ments, data man­age­ment set­tle­ments, etc.

LuLu Fi­nan­cial Group, one of the lead­ing global fi­nan­cial ser­vices com­pany, had ear­lier this year gone live with an up­graded blockchain cross bor­der re­mit­tance plat­form in as­so­ci­a­tion with the Fed­eral Bank, a lead­ing In­dian bank for re­mit­tances to In­dia. The ini­tial blockchain plat­form for re­mit­tances was up­graded with so­phis­ti­cated tech­nol­ogy that uses the R3 Cords blockchain plat­form de­vel­oped in part­ner­ship with an In­dian fintech com­pany. The plat­form of­fers a high level of se­cu­rity due to the dis­trib­uted ar­chi­tec­ture and use of ad­vanced cryp­to­graphic al­go­rithms.

“At LuLu Ex­change, we have al­ways em­braced in­no­va­tive tech­nol­ogy that gives rise to new prod­ucts and ser­vices that en­hances cus­tomer ex­pe­ri­ence. We are sure these new in­te­gra­tions will ease process and bring fur­ther op­er­a­tional ef­fi­ciency. Cost re­duc­tion is an in­te­gral part of the blockchain move­ment as it goes com­pletely dig­i­tal, which also in turns speeds up the process. The real time avail­abil­ity of data to all stake­hold­ers also makes this a trans­par­ent sys­tem as well,” added Ahamed.

The fu­ture will see am­bi­tious dis­rup­tion in fi­nan­cial ser­vices, driven by con­tin­u­ous tech­no­log­i­cal in­no­va­tion. This in­no­va­tion will drive valu­able cus­tomer in­sights en­abling the de­vel­op­ment of new prod­ucts and ser­vices. The trans­for­ma­tion of sys­tems and process will en­able or­ga­ni­za­tions to re­spond to com­pet­i­tive threats. Mar­kets and con­sumers will greatly ben­e­fit from the dy­namic fi­nan­cial en­vi­ron­ment.

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