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Banks in Pakistan are planning to launch an electronic platform for know-your-customer procedures that will operate at the national level. The blockchain-based system will allow them to exchange personal information to customers through what they describe as a decentralized and self-regulated network.
The Pakistan Banks’ Association (PBA) has signed a contract for the implementation of a blockchain-based know-your-customer (KYC) platform to be developed by Avanza Group. The latter unites companies specializing in advanced banking applications, customer experience management solutions, blockchain and artificial intelligence.
The signing ceremony was held at the industry body’s office in Karachi on Thursday and was attended by a number of officials, including chairman Muhammad Aurangzeb and managing director of Avanza Innovations, Waqas Mirza, the PBA announced.
The project to create the electronic KYC system is part of the ongoing efforts of the State Bank of Pakistan (SBP) to strengthen the country’s anti-money laundering (AML) and counter-terrorist financing (CTF) control infrastructure, a press release prepared.
“In addition to strengthening AML controls, the deployment of this platform will bring efficiencies to participating banks and will result in improved customer experience,” said the PBA, which has been overseeing the project on behalf of its members.
Consonance, the e-KYC platform designed by Avanza, uses blockchain technology to enable banks to standardize and exchange personal details via a “decentralized and self-regulated network.” This should happen with the customers’ consent, according to the union.
The banks will be able to make assessments of their existing and new customers by using data from KYC checks carried out by other participating institutions. This should minimize onboarding costs and improve the customer experience when opening an account, thereby “facilitating financial inclusion,” the PBA insisted.
Last March, SBP Governor Reza Baqir was quoted as saying that he sees few good use cases for crypto. At the same time, he acknowledged that blockchain technology could be useful with its potential to solve many problems.
Do you think Pakistani banks will find other uses for blockchain technology? Tell us in the comments section below.
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