IBM launches large-scale blockchain KYC project for financial institutions to improve user experience

IBM recently announced a blockchain project that aims to help banks solve various problems, such as proof of personal or organizational identity, source of funds, corporate shares, corporate history, etc., as well as monitoring of corporate information changes.

KYC (Know Your Customer) is a global anti-money laundering measure. Banks and financial institutions can use KYC to understand their customers and their financial transactions, and provide better services while also handling risks more carefully. However, compliance with KYC regulations has always been a global challenge.

At the Singapore Fintech Festival, IBM announced that it would collaborate with the country’s fintech startup KYCK! to launch a KYC project based on IBM blockchain, which aims to save financial service providers time and costs, allowing them to quickly understand and record customer needs in a completely secure environment.

Allen Lin, practice lead for IBM Blockchain and Bluemix Garage in Southeast Asia, said:

Since the establishment of the IBM Blockchain Bluemix Garage in Singapore this year, we have witnessed more and more startups and entrepreneurs participating with curiosity and enthusiasm, hoping to become unique competitors in the field of blockchain applications.

How it works

KYCK! was co-founded by three Singaporeans. It mainly provides users with information about Southeast Asian exchanges and creates simulated broker accounts to help them adapt to the operation of exchanges as soon as possible. At the same time, KYCK! also provides brokers with a platform for video conferencing and encrypted file submission to help them record new customer information more securely.

Soon, KYCK! will work with IBM Singapore Bluemix Garage to design and test a new solution based on Hyperledger Fabric, which aims to ensure the immutability, traceability and privacy of information in private distributed ledgers.

Darryl Tan, co-founder of KYCK!, said:

We are honored to work with IBM and put our professional financial skills into practice. Through our cooperation with IBM Bluemix Garage, we have witnessed the ability of blockchain to improve operational efficiency and transparency and reduce transaction risks. We hope that the existing customer registration process and overall user experience of financial institutions can be improved (through blockchain technology).

The platform developed by the two parties can authenticate identity through a reliable blockchain business network, and banks and government departments may be members of this business network. Once the identity authentication is passed, before opening an account, KYCK! will first record the customer information into the bank's existing system or its own system for re-verification.

IBM and blockchain

IBM has been committed to the IT industry for more than 100 years. Currently, IBM is responsible for the largest blockchain project in the commercial field. In addition to Singapore, IBM has established 8 Bluemix Garages in other countries around the world. Bluemix Garage is a cradle for developers, product managers and designers, providing them with a favorable environment for designing and developing applications on Bluemix. In Bluemix, developers can access more than 150 advanced services and APIs.

Recently, the technology giant IBM announced the development of an independent blockchain network, in which the world's top financial institutions and enterprises can use smart contracts. In addition, IBM also released a report that it believes that by 2017, 15% of the world's large banks will deploy blockchain technology.