KYC Blockchain Consortium Formed By Dubai Economy And Six Banks
Dubai Economy has partnered with six major banks to form a blockchain consortium for sharing of verified Know Your Customer (KYC) data between banks and licensing authorities in the UAE. Participating banks include Emirates NBD, Emirates Islamic, HSBC, RAKBANK, Abu Dhabi Commercial Bank (ADCB) and Commercial Bank of Dubai (CBD).
The ‘KYC Blockchain Consortium’ will facilitate a faster, more secure onboarding and exchange of digital customer data and documents through advanced blockchain-powered distributed technologies. The Consortium will drive the mutualization of KYC efforts among participating organizations. According to the consortium, the KYC platform will launch in the first quarter of 2020.
“With the launch of the KYC Blockchain platform, authenticated and validated KYC data of companies will simultaneously be shared with financial institutions of their preference,” Dubai Economy said. “This will expedite the opening of a bank account for newly registered companies and reduce the burdensome and costly requirements of managing KYC data for already registered companies. This is in stark contrast to the status quo, whereby multiple paper-based KYC files are redundantly originated and managed in silos.”
Ali Ibrahim, Deputy Director General of Dubai Economy, said that their strategic alliance with banks to launch the first KYC blockchain platform in the UAE is an important step towards continuing to attract investors to this market.
“The platform will offer a digital ‘Instant Bank Account’ functionality, allowing for faster and less cumbersome onboarding journey with banks and significantly improving the experience of new investors looking to establish themselves in the UAE. This in turn will boost customer satisfaction as well as ease of doing business in the UAE as a whole.”
Ibrahim added that the initiative aligns well with the leadership’s vision and aspiration of improving the UAE’s global rankings in ‘Doing Business’ and ‘Competitiveness.’
“We are excited to onboard some of the leading banking institutions to establish what will eventually become a nationwide ecosystem and we invite other financial institutions and licensing authorities to join in this initiative,” said Ibrahim.
The future vision is for the consortium-run ecosystem is to serve the greater good by improving ease of doing business as well as overall regulatory compliance in UAE. Smart Dubai, in collaboration with the UAE Central Bank, will reportedly play a pivotal role in overseeing and regulating the consortium operations.
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