Sri Lanka bank’s KYC process modernisation gets underway

Sri Lanka bank’s KYC process modernisation gets underway

7 July 2020 09:31 pm

A major yet trivial problem in the banking industry right now is how tedious and costly the traditional Know-Your-Customer (KYC) process.

The process is also tiresome for customers as they need to undergo the same process for each bank or financial institution with which they intend to work.

Central Bank has taken measures to modernise tedious and costly the traditional Know- Your-Customer (KYC) process tackling a major yet trivial problem in the banking industry.

The present system is also tiresome for customers as they need to undergo the same process for each bank or financial institution with which they intend to work.

Under this setup the Central Bank has commenced the process of developing a Blockchain Technology based Know-YourCustomer Proof of Concept.

It has entered into agreements to begin the process of developing Blockchain Technology Based Shared Know-Your-Customer (KYC) proofs of concept (POCs) on 7 July 2020.

CB identified the potential benefit for Sri Lanka’s financial services in 2018 and initiated an inter-industry study of Blockchain Technology, with the voluntary participation of the banks as well as the IT industry.

The new initiative will  pave the way for Blockchain Technology based financial service solutions in Sri Lanka developing a Shared KYC solution.

The CBSL advertised inviting companies with experience in developing Blockchain Technology based solutions for Shared KYC to join this project on a voluntary basis.

The selected applicants are Sampath Bank PLC together with the University of Colombo School of Computing (UCSC) as joint applicants, norbloc AB from Sweden, and Yaala Labs (Pvt) ltd and Linearsix (Pvt) Ltd, both Sri Lankan companies, as joint applicants.

Agreements were signed between the selected applicants and CBSL, with the attendance of Prof. W D Lakshman, Governor of Central Bank of Sri Lanka, amidst the attendance of senior bank officials.

In his remarks, the Governor stated that evaluating the feasibility of using a technology such as Blockchain to securely share KYC information has the potential to vastly increasing digital financial inclusion of Sri Lankans.

Deputy Governor of the CBSL, Mr. H. A. Karunaratne emphasized the importance of regulator led inter-industry initiative to promote digital innovation in Sri Lanka in all areas and harness talent both locally and internationally.