Seventh Russian Commercial Bank to Deploy Blockchain-Based International KYC Solution
The seventh Russian commercial bank, Alfa recently participated in an innovative test conducted by an international
blockchain platform named Corda. This test was aimed to expedite the exchange of data on a global level on corporate customers. This new service has its foundations on the Corda platform, which is an open sourceblockchain project. It is mainly designed for businesses. It is worth noting that the Alfa Bank JSC is the only Russian bank currently with an R3 Consortium membership.
This international KYC solution will enable for an exchange of client database between the members of the R3 Consortium throughout the world as a part of a user identification system of KYC. As a result of this KYC solution, all the financial institutions that have an R3 membership will have access to the data of all the corporate accounts. This data is essential in order to implement the KYC procedures. It has become fairly essential for banks to meet this regulatory demand. This is because the KYC policy assists them in improving the transparency between the financial transactions and thus prevent cases of money laundering and prevent fraud.
That said, all such all such data is scattered at the moment, and this requires all the banks to check the same amount of data multiple times. This also requires the customers to keep submitting the same data to different financial institutions. However, with the emergence of this new service, all the available information can be aggregated and put together as a single database. This can significantly help banks to lower down their operating costs and as a result, speed up all their financial transactions.
Therefore, this KYC solution can prove to be a significant boon, not just for banks but also for customers.