Sri Lanka Takes a Leap Forward in Digital Financial Services with Blockchain-Based Shared KYC Policies
Enhancing Customer Experience, Reducing Operational Costs, and Mitigating Risk
The Central Bank of Sri Lanka (CBSL) has made a significant move towards enhancing customer experience, reducing operational costs, and mitigating risk by successfully completing a proof-of-concept (POC) on Blockchain Technology-based Shared Know Your Customer (KYC) policies. This pioneering project was recently presented to the Governor of CBSL, Ajith Nivard Cabraal.
Project Background
The POC was developed by three selected applicants:
- Sampath Bank jointly with University of Colombo School of Computing (UCSC)
- Yaala Labs (Pvt) Ltd jointly with Linearsix (Pvt) Ltd
- Norbloc AB from Sweden
The project involved the participation of 10 commercial banks, including:
- Amana Bank
- Bank of Ceylon
- Commercial Bank of Ceylon
- Standard Chartered Bank
Key Findings and Benefits
The successful completion of the Blockchain Technology-based Shared KYC POC demonstrates the potential of this technology in enabling secure and efficient sharing of customer information between banks. The project’s findings are expected to pave the way for:
- Increased access to financial services: By improving the efficiency of the KYC process, customers will have easier access to financial services.
- Improved customer experience: Digitalization of the KYC process will encourage customers to use digital financial services, leading to a better overall experience.
- Reduced operational costs: Banks and other financial institutions will benefit from reduced operational costs, allowing them to allocate resources more efficiently.
Quote from Deputy Governor Yvette Fernando
“The purpose of developing a Blockchain Technology-based POC of an industry-wide Shared KYC process was to assess the potential to improve customer experience, lower operational costs and reduce the operational risk of banks and other financial institutions. We believe that digitalization of the KYC process will encourage customers to use digital financial services and increase their access to financial services.”
Conclusion
The successful completion of this project marks an important step in Sri Lanka’s journey towards digitalizing its financial services sector. It is expected to have a positive impact on the country’s economy, improving access to financial services for citizens and promoting economic growth.