Moody’s Company has mentioned {that a} new blockchain-based Know Your Buyer (KYC) platform within the United Arab Emirates is credit score constructive for the nation’s lenders.
In accordance with a report by native media outlet The Nationwide on Feb. 26, the rankings company has mentioned that the platform will enhance asset high quality and enhance income.
As Cointelegraph reported final week, a consortium of six banks, holding practically 45% of complete banking belongings within the UAE, was shaped this month to share verified buyer information utilizing blockchain know-how.
In accordance with Moody’s, the brand new KYC platform will enhance compliance with native and worldwide rules, whereas conserving buyer information safe. Moody’s mentioned:
“We anticipate the KYC blockchain consortium to help the asset high quality of UAE banks primarily by decreasing operational threat. The platform will facilitate quicker and safer onboarding, and alternate of authenticated and validated digital buyer information and paperwork by way of distributed applied sciences powered by blockchain.”
Securing buyer information in opposition to breaches
Use of blockchain know-how also can assist to protect in opposition to information breaches, as Moody’s defined:
“The platform will help regulatory oversight of banks’ assortment and administration of KYC information. We additionally anticipate it to assist credit score threat administration with higher information for consumer underwriting and debt assortment.”
Moody’s additionally expects different establishments within the area to steadily be a part of the platform, which it says “has the potential to develop into an essential element of the nation’s digital ecosystem.”
The KYC platform can be developed in partnership with blockchain platform and purposes supplier Norbloc and is predicted to roll out within the first quarter of 2020.