Dubai International Financial Center (DIFC) is collaborating with Mashreq Bank to roll out the first blockchain-based data-sharing platform in the country. The blockchain-based project will be known as Know Your Customer (KYC).
The idea of the platform is to help corporations and businesses open digital bank accounts quickly and more effectively.
Mashreq and DIFC want to concentrate on a specific use case, which has been hailed as a strategic decision that will bring out the best use of the platform. The strategy will enhance the integrity and quality of corporate Know Your customer information.
It will also improve the customers’ experience when they are creating bank accounts with the bank. According to both collaborators, it will lead to better efficiency and simplicity in doing business.
Arif Amiri, CEO of DIFC, said that the organization is collaborating with a leading financial institution in the region because it will improve efficiency and foster simplicity in doing business. According to him, “We place high importance on strategic collaboration with industry-leading financial institutions as part of our commitment to Emirates Blockchain Strategy 2021.”
He further pointed out that the collaboration with the top financial institution and licensing authorities in the emirate will improve operational efficiencies for professionals and government entities.
Scalability of the system
The KYC solution is very scalable, as it involves the gathering of information about customers, which will help organizations serve them well. According to DIFC and Mashreq Bank, the solution does not stand alone. It provides support for connections with other related initiatives when they follow the footprints of Mashreq and DIFC into production.
With this new development, the collaborators expect improved customer service delivery and better efficiency on the part of corporate entities and organizations.
How the platform works
The former strategy employed for KYC has evolved over the years. This time, so many organizations and entities believe blockchain technology will be one of the most effective tools for any KYC program.
It has opened doors to licensing financial institutions and authorities in the Emirates to join the platform launched by Mashreq Bank and DIFC. The life-changing blockchain experience will encourage a complete adoption under a unified country-wide umbrella.
DIFC will be preparing the KYC record as the application for corporate license goes on. However, before sharing the record on the blockchain portal to ease the process of creating a new bank account, they would secure customers’ consent.