Bank of Pakistan will launch an electronic platform for know-your-customer procedures that will operate at the national level. The blockchain-based system will allow the exchange of customers’ personal information through a decentralized and self-regulating network.
Pakistani banks are considering adopting blockchain for KYC checks
The Pakistan Bankers Association (PBA) has signed an agreement to implement a blockchain-based know-your-customer (KYC) platform developed by Avanza Group. The latter unites companies specializing in advanced banking applications, customer experience management solutions, blockchain and artificial intelligence.
The signing ceremony took place on Thursday at the offices of the industry association in Karachi and was attended by a number of officials, including Chairman Muhammad Aurangzeb and Avanza Innovations CEO Waqas Mirza, PBA said.
The project to establish an electronic KYC system is part of the State Bank of Pakistan’s (SBP) ongoing efforts to strengthen its anti-money laundering (AML) and counter terrorism financing (CTF) control infrastructure, the press release detailed.
PBA stated that “in addition to enhancing AML controls, the implementation of this platform will help participating banks increase efficiency and improve the customer experience.”
Consonance, an e-KYC platform designed by Avanza, uses blockchain technology to allow banks to standardize and enable exchanges. It should be done with the consent of the customer, according to the association.
Banks will be able to use data from KYC checks conducted by other participating institutions to evaluate existing and new customers. This will minimize the cost of opening an account, improve the customer experience when opening an account, and “promote financial inclusion,” the PBA claims.
Last March, SBP President Reza Baqir was quoted as saying that he thinks there are few good use cases for crypto. At the same time, he acknowledges that blockchain technology is useful and has the potential to solve many problems.
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