FintruX advisor Yash Mody explains the platform’s future plans
Yash Mody of FintruX explained to Crypto Finder how the P2P lending platform handles regulation, scalability and what types of currencies you can transfer via the service.
Interview from Blockchain Week London on 23 January 2018.
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This is truly a utility token, and the utility token is basically used as a transaction fee on the platform. So, you know, whenever they want to pay one of the service agents or pay FintruX, they will do that in their utility token.
And obviously, there's a lot of regulation in this area. So how scalable is it? Are you going to run into lots of different regulatory issues with, issues lending loans between countries?
Yeah, so we've taken great care to make sure that we're within regulation. We have four lawyers on board and advisers and all that, and we're very cognisant of what's required. As a first stage, we're not going to be doing cross-border lending. So let's say, for example, we're going to launch in Singapore and Canada, so it would be a loan that's in Canada from a lender and a borrower in Canada.
So, and the other, I guess, added security that we've done is that we're not handling the financial through the company. The money goes directly from the lender to the borrower, so we don't get involved in actual, you know, taking the deposit and then lending it out.
And so what system is used? Is that using conventional banking systems then for the money transfer?
Our platform can be used for both fiat currency or cryptocurrency. So if the borrower wants to borrow in fiat, then they can do that in fiat currency and the lender would just transfer the fiat currency directly to them.
So that's if it's in fiat currencies using conventional banking systems. If it's in cryptocurrency, that transfer would happen through your platform?
Yes, or actually from their wallet to, you know, the borrower's wallet.
And you can facilitate any cryptocurrency?
Are there problems that you run into then because you're using multiple other systems for the actual transfers which you don't have control over?
I guess it's no different from, you know, having one bank send it to another bank or one wallet send it to another wallet. So, you know, we're basically partnering with all of these and making sure that that gets done.
In part 2 of Crypto Finder's interview, Yash Mody outlines how FintruX is taking on traditional P2P lenders using blockchain whilst also working with them
Interview from Blockchain Week London on 3 January 2018.
Read the transcript:
Basically, FintruX is building a truly global peer-to-peer lending platform, and it's secure, it's fast, it's easy. Lenders and borrowers don't have to worry because the platform does all the work for them. They basically set their criteria and then they don't have to think about it. They don't have to auction and they don't, you know, it's not a cumbersome process. So that's why we think it's a new way of doing business.
So you're essentially a dating site for investors and people who need investment to find each other. But where does your responsibility stop in terms of once the deal's been made? The hard transfer?
So, here's the beautiful part about it, that because it's all done on blockchain and it's all done through smart contracts and our platform actually has a patented, like, no-code development algorithmic process and that generates all of the smart contracts and the blockchain platform for facilitating all of the loans. So every transaction, everything would be recorded on the blockchain. It's immutable and every transaction will be recorded there.
So those smart contracts are legally binding even though the transfer's happening in the real world so to speak (yes exactly). And have you met any resistance from conventional banks trying to...?
We've been talking to a lot of them. It's, we haven't met resistance, but it's more about, you know, education and working with them and, you know, making sure that we are compliant with, you know, their process and all of that.
And who are your competitors? Is anyone else doing something similar?
I guess the way we look at it, our competitors are more the traditional loaning platforms – the ones that have been doing it but in a more centralized way, in a more traditional way, where they're getting the deposits and lending it out themselves. We're looking at it as a truly matching platform and on blockchain, so.
And what's your roadmap? What should we be looking forward to from FintruX?
The roadmap is, basically, we're doing prototyping right now, and we're looking to launch towards the end of this year.
And then after that? Once you're up and running in a few countries, are you going to start adding any sort of special features?
Yeah, we have multiple stages planned, you know. We're going to expand geographically to various different countries, and then we're going to expand maybe possibly also into other asset classes if that's something that we want to do. So the beauty about the platform is that once it's built, you can kind of customize it as needed.