了解客户

Know your customer (KYC) has traditionally beena highly document-driven process, requiringcorporations to submit extensive paperwork tomultiple financial institutions. However, with changingtechnology and regulatory expectations and the needfor greater efficiency, the industry is leaning towardsa data-driven model. In this new paradigm, real-time,structured, and validated data plays a critical role inenhancing compliance, reducing manual intervention,and improving operational efficiency. •Data aggregatorsenrich datasets withdirect corporate input, enhancing their valueproposition and market competitiveness andreducing the cost of data acquisition. With the growing complexity of regulatoryrequirements and the rising cost of compliance,CIBs must adopt innovative, collaborative models toenhance efficiency. This data exchange frameworkpresents a scalable, cost-effective solution thatstrengthens the financial ecosystem whilepositioning participating banks at the forefrontof digital transformation. To obtain KYC data, corporate investment banks(CIBs) have two approaches. First, they can manuallyconnect with multiple registries, regulatory bodies,and exchange websites to collect data. This is alaborious and inconsistent process that demandssignificant resources. Or an alternate method is toutilize premium data aggregators like Moody’s, D&B,Markit, Refinitiv, etc., which offer70 to 80 percentof the KYC requirementsfrom verified sources ina digestible format. By leveraging this approach,the need for direct data extraction from numeroussources is reduced significantly. This streamlinescompliance efforts and improves data accuracy. At the same time, companies maintain11 bankingrelationshipson averageand must provide at least10 key documents per bankfor compliance. Thisresults in100 to 200 KYC document requestsannually, causing inefficiencies, duplication ofeffort, and compliance fatigue. This paper introduces astrategic data exchangemodelthat is built on a proof-of-work mechanism,differentiating it from blockchain-based KYC models.In this new model, the client provides reliable data tothe provider in case of any gaps, leveraging the CIB’sinfrastructure and in turn earns incentive from theCIB. The CIB earns credit from the data provider, andthe data provider benefits from reduced long-termdata acquisition costs. In contrast to blockchain-based KYC models, which frequently struggle dueto fragmented regulatory acceptance, the inabilityto support multi-jurisdictional compliance, and lackof standardized verification, this model provides acentralized but scalable approach. By implementing this model: •CIBslower operational costs, improveKYC compliance, and reduce manualverification efforts. •Companiesreduce KYC fatigue by minimizingredundant document submissions, leading toimproved efficiency in banking relationships andthey earn incentive for supplying information. The challenges:High cost and fragmentation Global premium data providers, on average, investan estimated $50 million to $100 million annuallyin acquiring and maintaining high-quality corporatedata. Even with such investments, they still face datagaps, requiring their clients to conductmanual verification. At the same time, cumbersome KYC experiencesdiminish overall client satisfaction. Research indicatesthat companies spend an average of1,500 hoursannuallyresponding to KYC requests, leading toinefficiencies and delays in business transactions. Exploring alternatives:KYC utility for blockchain solutions Blockchain is considered a potential solution forsimplifying KYC processes. By enabling decentralized,tamper-proof records, blockchain seeks to establish asingle, reusable KYC profile that financial institutionscan securely access. This approach reduces duplicationof effort and enhances transparency by ensuring that,once verified, KYC data remains unchangeable andtraceable. Additionally, blockchain promises to providegreater security by using cryptographic verification,which reduces the possibility of identity fraud andunauthorized data access. Absence of a unified trust mechanism: Without a central verification authority, bankshesitate to rely on third-party validated data,reducing the credibility of blockchain-basedKYC records. High infrastructure costs: Permissioned blockchain models requiresubstantial investment in infrastructure,security, and maintenance, making large-scaleadoption costly. Nevertheless, despite its potential, blockchain-basedKYC models present several drawbacks. Blockchain’s immutability conflicts with dataprotection laws like GDPR, which mandate theability to modify or delete user dataupon request.Data immutability vs. privacy regulations: Regulatory fragmentation: Different jurisdictions have varying regulations,and decentralized KYC models struggle withcross-border compliance due to the lack ofstandardized legal frameworks. A cost-effective alternative:The strategic data exchange model Unlike traditional blockchain-b