39 firms complete KYC trial on R3’s Corda blockchain
Enterprise blockchain software firm R3 says its partners have completed over 300 transactions on a know your customer (KYC) application built on the Corda blockchain platform during a four-day collaborative trial.
A total of 39 firms participated in the project, including ABN Amro, BNP Paribas, China Merchants Bank, Deutsche Bank, DNB, ING, Natixis, National Bank of Egypt, Societe Generale and US Bank.
In addition, the regulators and central banks involved included Banco de la República (Central Bank of Colombia), Federal Reserve of Boston, Superintendencia Financiera de Colombia, and Superintendencia de Banca Seguros y AFP de Peru.
David E. Rutter, CEO of R3, says: “KYC requirements present a significant challenge to financial institutions and the process is often slow and time-consuming.”
The transactions were conducted in 19 countries across eight timezones. Banks were able to request access to customer KYC test data, whilst customers could approve requests and revoke access.
Customers were also able to update their test data which was then automatically updated for all banks with permission to access it.
The 39 participants deployed and ran a total of 45 nodes in Microsoft Azure, “demonstrating the power of collaboration using shared business logic on the Corda network”.
The participants were able to communicate and manage test customer KYC data across the Corda network using a CorDapp designed and built by Synechron.
According to R3, traditional KYC processes are complex and often duplicative. Its self-sovereign model allows corporate customers to create and manage their own identities including relevant documentation and then grant permission to multiple participants to access this data.
R3 explains that this reduces duplication and costs by eliminating the need for each institution to individually attest and update KYC records.
In addition, Corda’s approach to sharing data means only those with a need to see it will have access. This will address any concerns around data privacy and security that may arise when sharing identity data.
Negate the negativity
R3 has been busy in June.
The Blockchain Insurance Industry Initiative (B3i) selected Corda to build its applications and business network.
In addition, R3 fought back against a news article that claimed it was running out of money.
Rutter said: “A negative and inaccurate news article about R3 was published. We were saddened that any of our previous employees saw fit to spread false, malicious rumours about the company, and were very disappointed that unsubstantiated figures and comments were taken seriously by a reporter, who then subsequently chose to ignore our factual response.”