Blockchain software developer R3 announced on Thursday that 39 companies had tested a Know Your Customer (KYC) application built on its Corda platform. During the four-day experiment, the partners initiated and managed 45 nodes in Microsoft Azure to conduct over 300 transactions in 19 countries. The companies could communicate and manage KYC data on the Corda platform using a CorDapp developed by Synechron.
Banks had access to client KYC test data, while customers were able to approve requests and terminate access. The latter could also update their test information so that all the banks had access to it. The parties concluded that this blockchain-based model safely enables corporate clients to develop and efficiently manage their own data and give permission for access to multiple parties.
Among the 39 participants, notable names include banking majors such as BNP Paribas, Deutsche Bank, ING, Raiffeisen Bank International, and Societe Generale. Besides, the experiment involved several regulators and central banks, including the Federal Reserve of Boston, Colombia’s central bank, and a financial regulator from Peru.
The trial demonstrated that distributed ledger technology (DLT) reduces duplication and cuts costs as companies need not manage KYC records individually.
R3 CEO David Rutter commented:
“KYC requirements present a significant challenge to financial institutions and the process is often slow and time-consuming. As our corporate membership continues to grow, there has been increasing demand for blockchain-based KYC solutions. Not only does this project demonstrate how blockchain can allow institutions to retain control of and manage their own identity, but it also validates the design choices we made in our approach to privacy on Corda.”
Tim Coates of Synechron stated:
“The Corda platform solves many of the KYC-specific requirements and supports gradual network adoption. Blockchain’s immutability used as a new verification mechanism, and its peer-to-peer nature enabling greater data privacy, are two of the native features that have attracted many in the KYC sector to blockchain.”
As reported last week, B3i, a group of insurers that launched a startup, has picked R3’s platform over Hyperledger, another popular blockchain solution. The move came after the consortium assessed Corda’s performance in terms of data privacy, interoperability, scalability, and productivity.