Twenty-six French companies and five major banks completed a trial of the KYC (Know-Your-Customer) application built on the Corda blockchain platform. According to the press release, members of the R3 consortium, RCI Bank and Services participated in the POC that the firm organized around the customer knowledge in France.
Working with the Association Française des Tresoriers d’Enterprise (AFTE – French Association of Business Treasurers), a total of 26 firms participated in the regional trial. The test was attended by companies from sectors such as retail, food processing, pharmaceuticals, insurance, consulting, aeronautics and automotive, which worked with five French banks to test the solution.
“Corda is the ideal technology for creating KYC platforms, as it allows users to have complete control of their data, being certain that this data will not be shared with other actors unless these users have given their explicit permission. They have the possibility to revoke this permission at any time, all being recorded in the Blockchain Corda,” said David E. Rutter, CEO of R3.
Recall, Corda is a highly specialized tool designed for financial organizations. The platform was created in order to reduce costs in the implementation of various business operations. This is achieved due to the fact that companies can make transactions directly through the use of smart contracts. They, in turn, provide a high level of confidentiality and security of operations.
The key feature of Corda is that the platform does not use blockchain in the usual sense of the word. Instead, special notary nodes are used. Transactions that are made on Corda are not broadcasted to all its participants. Records in the database are available only to those network participants who have the right to view and manage them.
Representatives of the project are confident that the blockchain technology used on the Corda platform can be the key to the transformation of international operations in modern financial markets. The company believes that the creation of a separate platform by each company does not make any sense, as this leads to the creation of a multitude of “islands” not connected to each other. At the same time, creating a single platform with many products will be similar to the Internet, where innovation will be combined with communication between people, representatives of the blockchain-consortium R3 believe.
At the same time, KYC procedures are a requirement of regulators in most countries and are aimed at increasing the transparency of financial transactions. Before opening an account and conducting a transaction, banks identify the client and request various documents from them. These data are still fragmented.
The use of blockchain solutions makes it possible to reduce the operating costs of banks since they can refer to the results of previous checks already carried out by other system participants. Clients also do not need to repeatedly duplicate the same documents in response to requests from different financial institutions. Corda's solution implies joint access of banks to corporate customer documents required by the KYC policy.
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