Financial services consultant and technology provider Synechron is collaborating with R3 to build a solution for know-your-client (KYC) processes using distributed ledger technology (DLT).
The project, known as LEIA 2, will use Corda, R3’s financial-grade distributed ledger, to create a solution addressing issues of data collection and validation, customer experience and data privacy - all issues that currently affect KYC in corporate banking.
It will be designed to fit into the existing framework of in-house and external data providers, but, according to Synechron, the hope is that it will also be part of a movement towards a “more disruptive vision” for bank processes.
The solution will focus on building a point-to-point, secure solution that takes a step towards creating verifiable corporate data, while furthering the process of reducing the cost of KYC processing and creating a self-sovereign corporate digital identity.
Using DLT allow for validated and trusted data, without the possibility of tampering. It also allows for distribution models that allow data owners to control the distribution of their identity data.
The project also involves 12 banks from around the world. It kicked off in July, with a three-month period in which to identify the objectives and business requirements of the group, define a rough schedule, and to develop a functional prototype on the Corda platform.
Once the project is complete, Synechron intends to run a demonstration in its Financial Innovation Labs.
Faisal Husain, CEO of Synechron, said: “DLT will improve current processes and improve experiences for both banks and customers. The work R3 is doing to provide a trusted platform and bring together the ecosystem of players for such a robust use case is incredibly significant to the future of KYC and financial services.”
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