Pakistan Banks’ Association launches a national, blockchain based, eKYC platform for the banking industry in Pakistan
Karachi, March 02, 2023: Pakistan Banks’ Association (PBA), on behalf of all its member banks, signed the project contract for the development and execution of Pakistan’s first, blockchain based, national eKYC banking platform with the Avanza Group. The signing ceremony was held at the PBA office in Karachi on March 2, 2023 .
The ceremony was attended by PBA Chairman, Mr. Muhammad Aurangzeb, who is also President HBL; Mr. Akhter Javed, Director BPRD, SBP; Mr. Tawfiq Hussain, CEO PBA, the signatory for PBA; Mr. Waqas Mirza, CEO Avanza Innovations; and Mr. Omer Khan, CEO, Avanza Solutions (Pvt) Ltd; the signatory for Avanza.
The eKYC (electronic Know Your Customer) project is part of SBP’s ongoing efforts to strengthen the control infrastructure for Anti Money Laundering (AML)/Terrorist Financing (TF) in the country. PBA has been overseeing the planning and management of the project on behalf of the banking industry, under the aegis of the State Bank of Pakistan.
In addition to strengthening AML controls, the deployment of this platform will bring about efficiencies at participating banks and will result in improvement in customer experience, especially at the time of account opening, thus facilitating financial inclusion.
Avanza Group’s eKYC platform, ‘Consonance’, is being implemented for PBA. The platform will use blockchain technology through which banks will be able to standardize and exchange, with customers’ consent, their details via a decentralized and self-regulated network. This will be a support platform for Pakistan’s banking industry and all participating member banks will be able to perform assessments of their existing, as well as new customers, by utilizing information/ data available with any other bank on ‘Consonance’.
Once performed by a member bank, the eKYC data can be utilized by other banks for Customer Due Diligence (CDD), thus minimizing cost and effort in customer onboarding and improving the customers’ account opening experience, thus facilitating financial inclusion.