Blockchain technology is all set to revolutionise the financial sector - banking, insurance and the capital markets - and cause major disruption but it will prove to be beneficial in the long run, according to experts.
They were speaking at a session on the technology on Friday, the concluding day of the two-day Fintech Startup Challenge 2017 held here. They said the decision of the Andhra Pradesh government to promote the technology in the State was the right one.
Sudin Baraokar, head of innovation, SBI, said his bank was investing on the technology and “we want to be one of the largest blockchain platforms.” He said it is the right time for start-ups for developing the technology. “We will support and invest in startups in the sector,” he said.
Transaction cost Paul Kitti, co-founder of TenX, said reduction in transaction cost was the critical factor and the technology would certainly help in the matter.
Akshay Dhanak, vice-president of HDFC Life, spoke about the relevance of the tech for the insurance sector.
Crucial issues Rachna Nath, head of digital consulting services, KPMG, said the technology would remove intermediaries but there were two critical issues - scale and infrastructure - to be addressed before introducing the technology.
JA Chowdary, IT adviser to the Chief Minister, said blockchain technology would certainly usher in certain fundamental changes not only in the financial sector, but in other fields as well. He said the AP government had identified it as one of the most potential areas. Start-ups would be encouraged by the AP Technology Services.