Pakistan’s State Financial Institution (SBP) is developing a digital KYC system. Both the PBA Chairman and the CEO of Avanza Improvements were present at the signing ceremony on Thursday.
Avanza Group and the Pakistan Banks’ Affiliation have signed a deal to build a blockchain-based KYC platform. The latter group brings together businesses that offer cutting-edge banking software, CEM tools, blockchain technology, and AI.
Avanza Improvements CEO Waqas Mirza and PBA Chairman Muhammad Aurangzeb were both present at the signing ceremony on Thursday, which took place at the business group’s headquarters in Karachi.
The State Bank of Pakistan (SBP) is developing a digital KYC system in response to an information release as part of its ongoing efforts to strengthen Pakistan’s anti-money laundering (AML) and counter-terrorist financing (CTF) management infrastructure.
Using blockchain technology
This technology would increase effectiveness at participating banks and lead to improved customer experience, according to the PBA, which is leading the campaign on behalf of its members.
Avanza’s Consonance e-KYC platform enables banks to communicate private information scientifically via a “decentralized and self-regulated community” using blockchain knowledge. According to the group, it could only occur with the customers’ consent.
The results of Know Your Buyer (KYC) checks conducted by various participating establishments will allow banks to consider their current and potential customers. The PBA claimed that reducing the cost of onboarding new clients and streamlining the account creation process might make financial services more accessible.
In March of last year, SBP Governor Reza Baqir said he doesn’t foresee many steady-use scenarios for cryptocurrencies. Nonetheless, he also acknowledged that blockchain technology had the potential as a solution to some issues.