Moody’s Corporation has revealed that a blockchain powered KYC (Know Your Customer) platform deployed by the UAE is credit positive for the country’s lenders.
As per a media release published by ‘The National,’ the credit ratings agency has stated that the platform will enhance the quality of assets and improve profits.
It can be remembered that an association of six banks, possessing almost 45% of total bank assets in the country, was established in February to exchange verified client info utilizing blockchain platform.
As per Moody’s, the latest KYC platform will enhance abidance of domestic and global rules, while retaining client info in a safe manner. Moody’s stated:
“We expect the KYC blockchain consortium to support the asset quality of UAE banks primarily by reducing operational risk. The platform will facilitate faster and more secure onboarding, and exchange of authenticated and validated digital customer data and documents through distributed technologies powered by blockchain.”
Moody’s highlighted that blockchain technology can also assist in protecting data infringement:
“The platform will support regulatory oversight of banks’ collection and management of KYC data. We also expect it to help credit risk management with better data for client underwriting and debt collection.”
Moody’s also anticipates other organizations in the zone to steadily enroll with the platform. The agency said that the platform “has the potential to become an important component of the country’s digital ecosystem.”
The KYC platform will be built in collaboration with blockchain focused Norbloc and is anticipated to be rolled out in the first quarter of 2020.
