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The Abu Dhabi Global Market, ADGM, the award-winning International Financial Centre in the capital of the UAE, successfully concluded the first phase of the industry electronic-Know-Your-Customer, e-KYC, utility project.
The Financial Services Regulatory Authority, FSRA, of ADGM, in collaboration with its project advisor, KPMG, have published a high-level summary of the project scope and the key insights for the benefit of the financial industry.
The e-KYC project, launched in March 2018, was an FSRA-led collaboration with a consortium of the UAE’s major financial institutions including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Ansari Exchange, Al Fardan Exchange, First Abu Dhabi Bank, and UAE Exchange. The objective was to develop a proof-of-concept PoC, to test operational and technological models of the e-KYC utility. In consultation with consortium members, the FSRA also developed a governance framework and business model on which the e-KYC utility can operate on an inclusive and sustainable basis.
Richard Teng, CEO of the FSRA of ADGM said, "By harnessing the power of technologies such as blockchain, the e-KYC project has demonstrated tangible benefits that may be offered by an e-KYC utility for financial institutions in the UAE. In addition to enhancing KYC checks across the industry, the utility can achieve significant cost efficiencies and financial inclusion driven by unified KYC standards. We would like to thank our corporate partners and members of the UAE financial industry for participating in this project and for their commitment to ensuring quality financial services for the country.
"The use of digital platforms to share information, transact and test solutions forms a core part of ADGM’s FinTech strategy. We look forward to delivering further meaningful results through the ADGM Digital Sandbox initiative, where we will facilitate FinTech-institutional partnerships and host consortium projects such as the e-KYC project."
While developing and testing the PoC, the FSRA worked with consortium members to build applicable processes and regulations pertaining to KYC individual retail clients into the prototype, with the aim of offering the industry a common set of robust KYC standards.
Umair Hameed, Financial Services Advisory Partner at KPMG, said, "It is very encouraging to see ADGM’s initiative bringing together public- and private-sector entities to collaborate and drive innovation in the UAE. These collaborations are at the heart of the UAE’s FinTech strategy, to drive technological advancements across sectors."
Following the successful first phase of the project, the FSRA is planning to commence a new phase, to facilitate small and medium enterprises with access to banking services. The FSRA has welcomed feedback and interests from the industry to participate in the project.
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