UAE Banks Federation discusses blockchain adoption for KYC processes

The Advisory Council of the UAE Banks Federation (UBF) discussed the adoption of blockchain technology for know your customer (KYC) processes at its 4th meeting this year.

Established in 1982, the UBF is a not for profit organization representing 50-member banks operating in the country. It is the official representative body of the UAE banking sector and provides a platform for the member banks to exchange ideas, opinions and information.

The proposed adoption of blockchain technology to enhance KYC processes at banks topped the agenda of the meeting held on December 17, 2018, the release said. Other key topics on the agenda included Emiratization, and digital transformation.

During the meeting, Aref Al Ramli, Chairperson of UBF’s Digital Banking Committee, Senior VP, Head of Digital Banking and Innovation at Mashreq Bank, presented the Digital Banking Committee study on blockchain technology.

The study explored the opportunities for creating an industry standard to digitize various processes within member banks, and the potential functions that can be leveraged by blockchain technology, including client onboarding, cross-border transfers, payments, and compliance reporting. The UBF said that the study will help address challenges faced by banks when it comes to KYC processes and explores its prospects in driving revenue growth and enhancing customer experience.

“As part of our efforts aimed at creating and sustaining a thriving banking ecosystem, we have undertaken a number of initiatives and new endeavors, such as the adoption of Blockchain into KYC process, which are in the pipeline as well,” H.E. AbdulAziz Al Ghurair, Chairman of UAE Banks Federation, said.