HSBC intends to use blockchain technology to enhance the KYC process for local investors and corporate clients
HSBC, the world’s largest bank, has been successfully onboarded to the regional Know-Your-Customer (KYC)-focused private blockchain sponsored by Dubai’s government.
The UAE KYC Blockchain Platform was built by the Dubai-based Department of Economic Development, called Dubai Economic. HSBC is the first international and fourth founding member to become online.
The UAE KYC Blockchain Platform is a nationwide ecosystem that allows licensing agencies and financial institutions in the UAE to share verifiable know-your-customer data.
According to Gulf News, HSBC’s inclusion in the platform allows investors to digitally create an account with the international bank using data that another bank has already validated via blockchain.
Dubai Economy’s head of development, Omar Al Mehairi, complimented the platform for delivering efficiency savings and boosting the overall business climate in the UAE, stating:
“The UAE KYC Blockchain Platform has transformed the investor bank account journey by significantly reducing the time it takes to establish relationships with banks. This will positively improve UAE’s ranking in the global Ease of Doing Business index.”
The technology, which was launched in February 2020, allows banks to reroute identity verification, which can be time-consuming and costly when done the old way.
Emirates Islamic, Emirates NBD, Commercial Bank of Dubai, Abu Dhabi Commercial Bank, RAKBANK, and Mashreq Bank are among the leading local banks and financial institutions that have joined the KYC Blockchain.
With Dubai at its core, the Middle East aspires to become a digital banking hub. As a result, the Dubai Financial Services Authority (DFSA) established a uniform framework for cryptocurrency laws in the city in March.
Authorities did, however, issue a warning in May about Dubai Coin, a cryptocurrency that claimed to be the “official digital money of Dubai” but was never approved.