Deloitte Luxembourg has launched KYCstart (pronounced “Kick Start”), a secure and streamlined means for customers to liaison and share information and documents with banks, insurance companies, funds, asset services and administrations using distributed ledger technology.
The model integrates extensible digital identities and regulated KYC (“know your customer”) service providers so that customers can control with whom they share their information and documents and keep track of those authorisations.
Deloitte Luxembourg has extended the core KYC platform developed by Deloitte’s EMEA Blockchain Lab to demonstrate a comprehensive ecosystem for fund investors based on a DLT platform, which puts new regulated entities in the picture. This PoC demonstrates the power of the Deloitte Labs to build technological and functional bricks that can be reused by other member firms globally to showcase disruptive business and operating models.
Thibault Chollet, Blockchain Leader at Deloitte Luxembourg explained that “with this proof of concept and related eco-system, we demonstrate the benefits of using Blockchain and smart contract to considerably reduce the costs of one of the most important burden of our institutional clients: KYC and customer on-boarding.”
While these procedures can already been externalised, they still must be performed each time a customer is willing to enter in a new business relationship with an institution. At the level of a market or an industry, it means that the same checks are repeated several times for the same customer. The responsibility of performing those checks still currently remain at the level of the institution that is required by law to oversee.
“Providers can now rely on specialised entities to delegate and mutualise the KYC and AML/CTF procedures, reducing the cost of both on-boarding and ongoing monitoring,” continues Maxime Heckel, Director at Deloitte Luxembourg specializing in KYC services.
He adds that Deloitte will start providing “KYC as-a-Service” to financial institutions as of mid-2017. KYCstart will be one of the proposed counterparty on-boarding channels for the service.
Deloitte Luxembourg will present this proof-of-concept at ICT Spring on 9-10 May.
