Blockchain Based eKYC (Know Your Customer)
Each financial institution has to indulge in the Know-Your-Customer (KYC) process with customers to comply with regulations, such as Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). Each Line of Business (LoB) within the financial institution performs their own customer checks. The customer typically provides KYC documents each time he requires services from different LoBs within the same institution. LoBs are unable to easily share customer KYC information in a secure and easy manner while retaining confidentiality and privacy of customer documents. This results in poor customer experience, and high operational costs for financial institutions.
Blockchain technology allows LoBs to securely share and exchange KYC information with a clear audit trail generated on the blockchain. Using blockchain based solutions, LoBs can securely search customer information, generate requests for KYC documents from other LoBs that have already verified customers, store validated customer documents and re-use them where required. The blockchain based sharing infrastructure can also be used for sharing customer profiles and alerts, which can trigger mitigation procedures when required in response to alerts. At Persistent, we’ve built a demo of the KYC use case with the Hyperledger platform.