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Deloitte develops blockchain platform for KYC checks

First Published 10th May 2017

Deloitte develops blockchain proof-of-concept to mutualize KYC checks.

Thibault Chollet, Deloitte Luxembourg

Thibault Chollet, Deloitte Luxembourg

Deloitte Luxembourg has developed KYCstart (pronounced "Kick Start"), a new proof-of-concept to perform customer on-boarding using Distributed Ledger Technology. The model introduces Digital Identities and the concept of regulated KYC Added-Value Service Providers, with the objective to onboard customers once to be used across several different platforms and organizations.

In this model, KYC Added-Value Services Providers are regulated entities that are authorized to perform Know-Your-Customer (KYC) procedures for communities of users who want to enter in business relationships with banks, insurance companies, funds, asset servicers, administrations and others.

Customers directly control with whom they share their personal information and documents, keeping track of these authorizations in the distributed ledger using smart contracts.

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.

Thibault Chollet, Blockchain Leader at Deloitte Luxembourg explains: "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."

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.