- The State Bank of Pakistan (SBP) is developing an electronic KYC system.
- PBA Chairman and Avanza Innovations CEO were present at Thursday’s signing event.
The Pakistan Banks’ Association (PBA) and Avanza Group have inked a contract for the creation of a blockchain-based KYC platform. The latter group brings together firms that provide cutting-edge banking software, CEM tools, blockchain, and AI.
PBA Chairman Muhammad Aurangzeb and Avanza Innovations CEO Waqas Mirza were among those present at Thursday’s signing event, which took place at the industry group’s headquarters in Karachi.
According to a news release, the State Bank of Pakistan (SBP) is developing an electronic KYC system as part of its continuing efforts to improve Pakistan’s anti-money laundering (AML) and counter-terrorist financing (CTF) control infrastructure.
Banking on Blockchain Tech
The PBA, which is managing the initiative on its members’ behalf, said that “in addition to strengthening AML controls,” the adoption of this platform would bring about efficiency at participating banks and will result in enhanced client experience.
Using blockchain technology, Avanza’s Consonance e-KYC platform enables banks to share personal data in a systematic format through a “decentralized and self-regulated network.” According to the organization, it may only occur with the permission of the clients.
With the results of Know Your Customer (KYC) checks conducted by other participating institutions, banks will be able to evaluate both their current and prospective clientele. The PBA said that this would facilitate access to financial services by reducing the cost of onboarding new customers and enhancing the account opening process.
SBP Governor Reza Baqir was reported saying that he does not see many solid use cases for cryptocurrency back in March of last year. Yet he also conceded that blockchain technology had promise as a solution to several issues.