A nationwide computerized platform for know-your-customer (KYC) procedures will be introduced by banks in Pakistan.
Customers’ personal information will be exchanged through what they refer to as a decentralized and self-regulated network thanks to the blockchain-based technology.
Avanza Group and the Pakistan Banks’ Association (PBA) have agreed to work together to establish a blockchain-based know-your-customer (KYC) platform.
The latter brings together businesses that are experts in cutting-edge financial software, customer experience management systems, blockchain technology, and artificial intelligence.
KYC Blockchain Platform Signing Ceremony
The signing ceremony was place on Thursday at the office of the business association in Karachi, and several officials, including its chairman, Muhammad Aurangzeb, and the CEO of Avanza Innovations, Waqas Mirza, were present, according to the PBA.
A press statement from the State Bank of Pakistan (SBP) explained that the project to develop the electronic KYC system is a part of ongoing efforts to bolster the nation’s anti-money laundering (AML) and counter-terrorist financing (CTF) control infrastructure.
“In addition to strengthening AML controls, the deployment of this platform will bring about efficiencies at participating banks and will result in improvement in customer experience,” detailed the PBA, which has been overseeing the project on behalf of its members.
Blockchain technology is used by Avanza’s e-KYC platform Consonance to allow banks to standardize and exchange customer information across a “decentralized and self-regulated network.”
According to the association, that should only occur with the clients’ permission.
With the use of the information gathered from the KYC checks conducted by other participating institutions, banks would be able to evaluate both their current and potential customers.
The PBA argued that this would “facilitate financial inclusion” by lowering onboarding expenses and enhancing the client experience when opening an account.
Former SBP Governor Reza Baqir was cited as saying that he sees limited practical use for cryptocurrencies in March of last year.
He agreed that blockchain technology has the potential to be helpful and that it can help with a variety of issues.
To read our blog on “Mastercard hails 7 crypto & blockchain startups in fintech programs,” click here.
