Banks including BNP Paribas, Deutsche Bank, and ABN AMRO, have carried out a trail of a KYC application built on R3’s Corda blockchain platform.
The four-day trial saw 39 firms deploy and run a total of 45 nodes in Microsoft Azure to carry out over 300 transactions in 19 countries across eight time zones. The participants were able to communicate and manage test customer KYC data across the Corda network using a CorDapp designed and built by Synechron.
Through the trail, banks were able to request access to customer KYC test data, whilst customers could approve requests and revoke access. Customers were also able to update their test data which was then automatically updated for all banks with permission to access it.
The system’s self-sovereign model allows corporate customers to create and manage their own identities including relevant documentation and then grant permission to multiple participants to access this data.
R3 claims this reduces duplication and costs by eliminating the need for each institution to individually attest and update KYC records. In addition, it also removes data and privacy issues as only those with a need to see data have access to it.
David Rutter, CEO of R3, said, “KYC requirements present a significant challenge to financial institutions and the process is often slow and time-consuming. As our corporate membership continues to grow, there has been increasing demand for blockchain-based KYC solutions.
“Not only does this project demonstrate how blockchain can allow institutions to retain control of and manage their own identity, but it also validates the design choices we made in our approach to privacy on Corda.”
Those participating in the trail included including, ALD Automotive, Alfa bank, Bank ABC, Bank of Cyprus, BCI, China Merchants Bank, Commercial International Bank – Egypt , CTBC Holding, , DNB, Hana Bank, ING, KB Kookmin Bank, Banca Mediolanum, Natixis, National Bank of Egypt, NH Nonghyup Bank, Qiwi, Raiffeisen Bank International, RCI Bank and Services – the financial services provider for Groupe Renault, SBI Bank LLC, Shinhan Bank, Societe Generale, U.S. Bank and Woori Bank.
In addition, the regulators and central banks involved included Banco de la República (Central Bank of Colombia), Federal Reserve of Boston, Superintendencia Financiera de Colombia, and Superintendencia de Banca Seguros y AFP de Peru.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
