Asean banks complete trial of KYC blockchain
03 October 2017 | 8642 views | 1
OCBC Bank, HSBC and Mitsubishi UFJ Financial Group (MUFG), together with Singapore's Infocomm Media Development Authority (IMDA), have completed a proof-of-concept for a Know Your Customer (KYC) blockchain.
Adopting a utility approach, the KYC blockchain was used to collect, validate, secure and share customer information on a permissioned ledger, eliminating the need for multiple form-filling by customers at different banks and eradicating inconsistencies in data gathering. The three banks on the platform were also able to store secured digital records of the validation process, thereby streamlining auditing and regulatory reporting.
The prototype’s performance was tested between February and May 2017 for its functionality, scalability and security.
Pranav Seth, head of e-business at OCBC Bank says the platform remained stable even with a high volume of information flow and maintained confidentiality by permitting access to the ledger’s information only with legitimate authentication.
“This partnership fans the spirit of cooperation among competitors as well as regulatory and government bodies, and we hope this will help foster and inspire more of such collaborative innovation initiatives," he says. "Our pioneering efforts have resulted in a KYC process that will not only enhance customer convenience, but will improve the industry’s operating efficiencies while reducing financial fraud and crime.”