Abu Dhabi Islamic Bank (ADIB) has made history by becoming the first Islamic bank to go live on the UAE KYC Blockchain Platform, a national ecosystem for the exchange of verified KYC data between licensing authorities and financial institutions. This is a significant achievement for the bank, as it demonstrates its commitment to innovation and digital transformation.
The UAE KYC Blockchain Platform was launched in 2020 by Dubai’s Department of Economy and Tourism (DET) in partnership with a group of four founding member banks, including Emirates NBD (ENBD), Commercial Bank of Dubai (CBD), Abu Dhabi Commercial Bank (ADCB), and HSBC. Since then, the platform has expanded, with DIFC, RAKEZ, RAK ICC, Mashreq Bank, and WioBank also joining the system.
According to reports, the platform will use advanced blockchain-powered distributed technologies to facilitate a faster, more secure on-boarding and exchange of digital customer data and documents, which is a first of its kind in the region. This will help financial institutions to reduce the time and costs associated with customer onboarding, while also ensuring the privacy and security of customer data.
This development is expected to have a significant impact on the banking industry in the UAE. The use of blockchain technology for KYC verification and data exchange will streamline the customer onboarding process, which has traditionally been a time-consuming and costly process. By automating this process, banks will be able to onboard customers more quickly and efficiently, which will improve the overall customer experience.
Furthermore, the use of blockchain technology for KYC verification and data exchange will enhance the security and privacy of customer data. As the platform is built on a distributed ledger, it will be more difficult for hackers to gain access to sensitive customer information. This will help to prevent identity theft and fraud, which is a growing concern for banks around the world.
Overall, the launch of the UAE KYC Blockchain Platform is a significant development for the banking industry in the UAE. As more financial institutions join the platform, we can expect to see a significant improvement in the customer on boarding process, as well as an increase in the security and privacy of customer data.
