Cambridge Blockchain has combined its distributed digital identity system with IHS Markit’s Know-your-customer (KYC) services.
KYC costs are exceeding $500m annually for large banks, while strict data privacy rules such as the European GDPR is limiting the ability to access validated customer identity attributes and comes with potential fines.
However, by combing IHS Markit’s kyc.com services with Cambridge Blockchain’s distributed digital identity system, the pair claims they can resolve the competing challenges of transparency and privacy in the industry. This will result in faster customer onboarding, lower costs, and enhanced compliance through a single, trusted and consistent view of customer reference data.
“The creation of utilities and other consortia to help financial institutions address the challenges of KYC has great potential improve standards and practices,” said Guy Harrison, managing director and head of KYC Services at IHS Markit. “However, for firms to operate efficiently on a global scale, identity data need to be highly portable. With this in mind, we are pleased to work with Cambridge Blockchain to apply the benefits of distributed ledger technology to a robust KYC data collection, validation and management process.”
Launched by IHS Markit in 2014, kyc.com serves 17 global banks and over 140,000 registered legal entities. The service connects due diligence data to address KYC, financial regulation, tax and counterparty requirements.
It will be combined with Cambridge Blockchain’s software which offers secure, client-controlled peer-to-peer data sharing and a platform to connect multiple identity validators. The companies’ combined offerings are designed to enable full compliance with stringent data privacy rules including GDPR.
Matthew Commons, CEO of Cambridge Blockchain, added: “We look forward to continuing our collaborating with IHS Markit to give financial institutions confidence that their KYC, AML, tax, legal, MiFID, EMIR and other regulatory information is complete, accurate and up-to-date.”
Earlier this week, European lender 4finance Group said it has deployed anti-money laundering (AML) and know your customer (KYC) compliance solutions across a host of countries. The company has deployed FICO, TONBELLER and SIRON solutions across 10 countries and 20 back-office systems in just nine months.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
