Categories: Bitcoin Tech

Deloitte’s RegTech Offering: Blockchain-Powered KYC-as-a-Service Solution

Click here to view original web page at bitcoinmagazine.com

Global consultancy and accounting firm Deloitte announced that it has developed a new KYC-as-a-service solution using blockchain technology that will facilitate the customer onboarding process for financial institutions.

The proof of concept has been developed by the team headed up by Director and Blockchain Leader Thibault Chollet in Deloitte’s Luxembourg branch. The name of the new solution is KYCstart (pronounced “kickstart”). KYCstart creates digital identities for new customers that can then be used across different platforms and institutions, thereby making the customer onboarding process much more efficient while also reducing costs.

Currently, when a new customer is being onboarded by a financial institution, the process involves an employee of the compliance department electronically filling out KYC (Know Your Customer) forms, which include information such as place of incorporation, ownership structure, whether they are regulated or not, whether they have any legal proceedings against them, and what type of business will be conducted with them.

To gather this information, compliance officers will regularly need to reach out to the potential customer via email and phone as well as scroll through the regulator’s database to find any recorded wrongdoings and confirm the regulatory status of the customer.

Deloitte’s new proposed model of completing the onboarding process, however, involves regulated KYC added-value service providers, which are authorized to perform KYC checks for customers who would like to be onboarded by financial institutions, such as banks, insurance companies and investment management firms.

Customers and clients could then control who their company information is being shared with and would be able to keep track of the authorizations using blockchain-based smart contracts.

“With this proof of concept and related ecosystem, we demonstrate the benefits of using blockchain [technology] and smart contract[s] to considerably reduce the costs of one of the most important burdens of our institutional clients: KYC and customer onboarding,” Chollet explained.

Blockchain Technology Is Making Waves in RegTech

RegTech (regulatory technology), a relatively new branch of financial technology, focuses on leveraging innovative new technologies to improve regulatory reporting and monitoring as well as compliance processes for financial institutions.

The financial industry is particularly keen on this subsector of fintech as financial regulations have tightened substantially since the 2008 global financial crisis, which has led banks to invest heavily in the areas of KYC/AML, compliance and risk management. Hence, any solution that will help banks to streamline their processes and reduce overheads will be very welcome by financial situations.

As Bitcoin Magazine reported in April, blockchain technology is making waves in RegTech. The integration of distributed ledger technology into compliance systems and processes could save financial institutions up to 50 percent in compliance costs, according to blockchain startup Coinfirm and management consulting firm Accenture.

Using blockchain technology, data security could be improved, manual processes could be digitized, customer onboarding documents could be verified for authenticity, the speed and accuracy of daily regulatory reporting to regulators could be increased, and digital identities could be created for companies, which can then be shared among permissioned financial institutions, as Deloitte’s new KYC-as-a-service product is aiming to do.

Deloitte plans to roll out its new KYC-as-a-service solution to financial institutions this summer, and the newly developed KYCstart will be one of the proposed onboarding channels for this service.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama
Tags: technology

Recent Posts

Ripple Gives One Billion XRP to Former CTO Startup, Plus Paying For Publicity

Ripple Labs, the company behind XRP, has given for free some 1 billion XRP, worth $270 million, to a company… Read More

3 hours ago

54% of Bitcoin Volume on “Lower Quality Exchanges”: Report

The vast majority of the world’s cryptocurrency trading volume is in the hands of “lower quality exchanges”, while the world’s… Read More

3 hours ago

Bitcoin is Used more by Civilians than Some Bankers, Lawmakers or Terrorists

In many countries, including Palestine and the entire world at large, Bitcoin is used more by civilians than some bankers… Read More

3 hours ago

Billionaire Investor Tim Draper Claims Bitcoin Prices Will Hike Upto $250,000 By 2022

Very rich person Investor Tim Draper Claims Bitcoin Prices Will Hike up to $250,000 by 2022Bitcoin (BTC) may proceed to… Read More

3 hours ago

Bitcoin (BTC) mining giant Bitmain firm announces purchasing more crypto mining chips that subject to a potential profit of $1.2 billion

Risk Disclaimer - By using this web site you agree to its terms and conditions. All materials, including but not… Read More

3 hours ago

Squeaky-Clean Apple Is Quietly Pummeling Its FAANG Stock Buddies

Apple stock is brushing off a decline in iPhone sales while continuing to make gains in 2019. | Source: REUTERS/Joshua… Read More

3 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More