BNP Paribas, Deutsche Bank, and China Merchants Bank are just some of the several major banks to have carried out a test for a Know Your Customer (KYC) application built on top of R3 Corda blockchain platform.
The blockchain software developer announced last Thursday that during the four-day trial, 39 firms deployed and ran a total of 45 nodes in Microsoft Azure to conduct over 300 transactions in 19 countries across eight time zones. By using the CorDapp built by Synechron, the participating companies could communicate and manage KYC data on the Corda platform.
Banks were able to request access to customer KYC test data, whilst customers could approve requests and terminate access. When customers updated their information in the test, the data was automatically updated for any bank that had permission to access it.
The app’s self-sovereign model is aimed to safely enable corporate clients to create and efficiently manage their digital identities and then give permission to multiple parties to access this data. As a result, the system reduced duplication and related costs by eliminating the need for companies to manage KYC records individually. The distributed ledger technology also ensures that only entities that have permission to view the data have access to it, therefore solving data privacy and security issues.
R3 CEO David Rutter said:
“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.”
Also involved in the trial were Raiffeisen Bank International, ABN AMRO, Societe Generale, ING, among others. The trial also saw several regulators and central banks participate, including the Federal Reserve of Boston, the Central Bank of Colombia, and the Superintendency of Banking and Insurance of Peru.
Just recently, a consortium of insurers known as B3i, switched its application from HyperLedger to R3 Corda platform after reviewing its performance in terms of data privacy, scalability, interoperability, and productivity.