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The impracticable KYC dream: one set of global standards and procedures

Many organisations in payment and finance still believe that, contrary to the mounting evidence it won’t work, if they and ALL corporates used the same KYC standards and procedures the problems, the in-efficiencies and losses would disappear. They say, “Just adopt our standards and our system and all will be seamless and easy.”

The problem is that there is no-one set of KYC and regulatory standards, and they are changing all the time. Not only this, there are:

  • three main KYC third party platforms:
    • Bloomberg’s “Entity Exchange” a secure and streamlined way to provide sensitive documents and data critical to the onboarding process in banks and FIs regardless of which KYC standards and policies they use
    • KYC.com from Genpact and Markit who are now partnering with Dow Jones, Exiger, and Regulatory DataCorp
    • Thomson Reuters’s “KYC as a Service” (originally OrgID).
  • several smaller platforms including:
    • Encompass
    • Tradle.

Tradle - KYC on block chain 

Starting with KYC on blockchain, Tradle - a South African company -  is building a global trust provisioning network to give retail, wealth, SME and institutional customers of financial institutions faster access to capital and risk allocation. They have many innovative uses of technology to make the process as easy to load your KYC data, and manage it, e.g. giving approval for sharing your data, for example:

Source & Copyright©2018 - Tradle

Tradle automatically accepts all KYC information in any standard and incorporates it into their KYC database. They don’t insist on any particular format. The issue is communicating and exchanging with other KYC platforms.

KYC data exchange between platforms

To overcome the lack of common standards and systems is have direct data exchange between the platforms with NO single entity in the middle controlling and standardising the process. Something along these lines:

Source & Copyright©2018 - CTMfile 

This is required to solve the realities of the global KYC and regulatory market.


CTMfile take: In KYC unrealistic dreams don’t help.


This item appears in the following sections:
Bank Relationship Management & KYC
Know Your Customer
e-Identity

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