IBM Completes Proof-of-Concept Blockchain-Based Shared KYC

IBM Completes Proof-of-Concept Blockchain-Based Shared KYC

by January 3, 2018
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IBM  announced the successful completion of the Phase I proof-of-concept (POC) of its Shared Corporate Know Your Customer (KYC) project with Deutsche Bank, HSBC, Mitsubishi UFJ Financial Group (MUFG) and the Treasuries of Cargill, IBM.

Through the Shared KYC POC, IBM successfully demonstrated how the Blockchain-based IBM Shared KYC platform provides a secure, decentralized and efficient mechanism for banks to collect, validate, store, share, and refresh trusted KYC information of corporate customers.

Through this collaboration, IBM has established client provisioned and consented sharing of KYC information and securing documents with encryption. Network trust is established through digitally verified documents on the Blockchain and the underlying consensus protocols. The overall objectives of the Shared KYC project, of which the technology-focused POC was the first phase, are to:

  • Define harmonized standards for the collection and validation of certain core documents and information agreeable to all bank participants;
  • Eliminate repetition of mundane documentary tasks through collaboration and privacy-preserving sharing while shifting focus of human intervention to the higher-value tasks of risk evaluation and decision making;
  • Create a sharing economy environment (where the whole is greater than the sum of the parts) that is an inclusive ecosystem open to all banks, corporate customers, third party service providers, and regulators;
  • Digitize all corporate KYC information to preserve authenticity and accuracy, and provide greater flexibility for query and analysis of the data; and
  • Increase transparency and trust through technology with up-to-date shared standards improving collective knowledge of AML risk and double-blind privacy model ensuring client confidentiality.

Blockchain provides a safe, secure, and scalable infrastructure to support the sharing of common KYC information providing benefits to all network participants – banks, corporates, service providers and regulators. This initiative aligns with the Monetary Authority of Singapore’s vision to drive innovation in modernizing Singapore’s Finance Infrastructure, and at the same time, enhances transparency into KYC processes performed by Banks.

Banks will be able to use such a platform to enhance the customer experience, automate mandatory processes and eliminate duplication through harmonizing and sharing KYC information resulting in operational savings and, over time, reduced operational risk. The corporates also benefit from reduced paperwork by doing KYC once and sharing it with relevant financial institutions through a user-controlled consent model.

The governance of the shared KYC network will include regular certification of contributing banks to assess their compliance with the harmonized standards and provide transparency and confidence to the wider group of participating banks.

With the fast-paced growth of Banking and Finance in Singapore, the current process, which is manual, repetitive, inefficient and expensive, will not be able to keep up. Shared KYC aims to harmonize standards across banks with a focus on digitization of documentation, and multiple levels of information validation and augmentation, ensuring security and privacy for the platform participants.

 

Featured image via Pixabay

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  1. #2 Five considerations for blockchain applied to data privacy and GDPR - BlockChainBuzzy 24 May, 2018, 18:59

    […] in them. For example, in Singapore, banks and other organizations successfully completed a Shared Know Your Customer (KYC) network , which allows banks and institutions to share KYC information between them over the network. Using […]

  2. #3 Five considerations for blockchain applied to data privacy and GDPR | Blockchain News focuses on Blockchain, Distributed Ledger technology, and Initial Coin Offerings (ICO) news and opinion 26 May, 2018, 16:19

    […] in them. For example, in Singapore, banks and other organizations successfully completed a Shared Know Your Customer (KYC) network, which allows banks and institutions to share KYC information between them over the network. Using […]

  3. #4 Why Is Blockchain A Good Solution For KYC Verification? – DevTeamSpace Blog 21 June, 2018, 17:27

    […] is quite an innovation that has been popularising for quite some time. Technology giants like IBM has already invested in similar projects like Shared Corporate Know Your Customer (KYC) project […]

  4. Priya
    #5 Priya 11 July, 2018, 12:50

    Very helpful and Great information,
    I appreciate advice especially coming from a professional.
    Thanks again for providing great information about Blockchain KYC,Keep up the great work!

  5. #6 Blockchain PoC: Inspiring Proof of Concepts on Blockchains - Velvetech 13 September, 2018, 17:04

    […] January 2018, IBM announced the successful completion of phase 1 of its Know-Your-Customer (KYC) project. IBM partnered with […]

  6. #7 Blockchain for KYC: Game-changing RegTech innovation | Blockchain News focuses on Blockchain, Distributed Ledger technology, and Initial Coin Offerings (ICO) news and opinion 21 September, 2018, 19:30

    […] around the world on early stage shared KYC projects based on blockchain. In fact, in January 2018, IBM announced successful completion of the “Proof-of-Concept Blockchain-based Shared KYC” in collaboration […]

  7. #8 Blockchain for KYC: Game-changing RegTech innovation 21 September, 2018, 20:27

    […] around the world on early stage shared KYC projects based on blockchain. In fact, in January 2018, IBM announced successful completion of the “Proof-of-Concept Blockchain-based Shared KYC” in […]

  8. #9 How KYC is using Blockchain – AnmolGogia 26 September, 2018, 23:21

    […] with some big companies like HSBC, Deutsche Bank, and Mitsubishi UFG. In fact, in January 2018, IBM announced the successful completion of the “Proof-of-Concept Blockchain-based Shared KYC” in […]

  9. #10 Blockchain for KYC: Game-changing RegTech innovation | HK3 News 10 October, 2018, 01:26

    […] around the world on early stage shared KYC projects based on blockchain. In fact, in January 2018, IBM announced successful completion of the “Proof-of-Concept Blockchain-based Shared KYC” in collaboration […]

  10. #11 Blockchain for Know Your Customer (KYC): Use Cases - Merehead 6 June, 2019, 17:50

    […] KYC platform has already found practical implementation. The most famous example is the joint project of IBM, Deutsche Bank, HSBC, the Mitsubishi UFJ financial group (MUFG) and the Treasuries of […]

  11. #12 Streamlining the Know Your Customer procedure with blockchain – Computer Security Articles 14 June, 2019, 22:30

    […] blockchain platform Hyperledger since 2015, and the company has already demonstrated a working KYC proof-of-concept for a bunch of global banks, including Deutsche Bank and HSBC. In the B2C domain, NEC is actively […]

  12. #13 Streamlining the Know Your Customer procedure with blockchain - f1tym1 14 June, 2019, 22:39

    […] blockchain platform Hyperledger since 2015, and the company has already demonstrated a working KYC proof-of-concept for a bunch of global banks, including Deutsche Bank and HSBC. In the B2C domain, NEC is actively […]

  13. #14 Streamlining the KYC procedure with blockchain | Kaspersky official blog 17 June, 2019, 18:21

    […] blockchain platform Hyperledger since 2015, and the company has already demonstrated a working KYC proof-of-concept for a bunch of global banks, including Deutsche Bank and HSBC. In the B2C domain, NEC is actively […]

  14. #15 Streamlining the Know Your Customer procedure with blockchain - Best Antivirus Reviews 17 June, 2019, 18:47

    […] blockchain platform Hyperledger since 2015, and the company has already demonstrated a working KYC proof-of-concept for a bunch of global banks, including Deutsche Bank and HSBC. In the B2C domain, NEC is actively […]

  15. #16 Snellire la procedura KYC con la blockchain | Blog ufficiale di Kaspersky 18 June, 2019, 14:12

    […] piattaforma commerciale blockchain Hyperledger fin dal 2015, e ha già realizzato con successo una proof-of-concept riguardo il KYC di una serie di banche internazionali, tra cui Deutsche Bank e HSBC. Nel settore […]

  16. #17 Usprawnienie procedury PSK dzięki łańcuchowi bloków 18 June, 2019, 16:12

    […] od 2015 r. komercyjną platformę blockchain Hyperledger, a firma zaprezentowała już działający dowód koncepcji PSK dla grupy lokalnych banków, w tym Deutsche Bank i HSBC. Z kolei w obszarze B2C firma NEC […]

  17. #18 Cómo optimizar el proceso "Conozca a su cliente" con la cadena de bloques | Blog oficial de Kaspersky 19 June, 2019, 16:09

    […] de bloques comercial Hyperledger desde el 2015 y la empresa ya ha demostrado la eficacia de una prueba de concepto KYC con un puñado de bancos internacionales, como el Deutsche Bank y HSBC. En el campo B2C, NEC […]

  18. #19 Optimierung des KYC-Verfahrens mithilfe von Blockchain | Offizieller Blog von Kaspersky 19 June, 2019, 17:42

    […] Hyperledger seit 2015 und das Unternehmen hat bereits einen funktionsfähigen KYC-Proof-of-Concept für eine Reihe globaler Banken, darunter die Deutsche Bank und HSBC, demonstriert. Im B2C-Bereich […]

  19. #20 Use a blockchain para conhecer seu cliente 20 June, 2019, 01:18

    […] uma plataforma da blockchain comercial Hyperledger desde 2015 e já demonstrou a eficácia de uma prova de conceito do KYC com diversos bancos internacionais, como o Deutsche Bank e o HSBC. No campo B2C, a NEC apoia […]

  20. #21 Use a blockchain para conhecer seu cliente – TI Forense 20 June, 2019, 09:55

    […] uma plataforma da blockchain comercial Hyperledger desde 2015 e já demonstrou a eficácia de uma prova de conceito do KYC com diversos bancos internacionais, como o Deutsche Bank e o HSBC. No campo B2C, a NEC apoia […]

  21. #22 Cómo optimizar el proceso Conozca a su cliente con la cadena de bloques | Blog oficial de Kaspersky 6 August, 2019, 19:52

    […] de bloques comercial Hyperledger desde el 2015 y la empresa ya ha demostrado la eficacia de una prueba de concepto KYC con un puñado de bancos internacionales, como el Deutsche Bank y HSBC. En el campo B2C, NEC […]

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