Hi, I’m from Tradle.
We’re building a KYC network on blockchain for banks. A quick recap on what that means.
Today, banks are either doing KYC alone, or through an intermediary. Neither works well.
If they’re doing it alone, they do a lot more work and each bank repeats the work.
If they use an intermediary, (e.g. a KYC registry) there are other problems. For the intermediary, they are stuck between two opposing and increasingly strict sets of regulations: financial crime and data privacy laws.
Also, centralization makes them vulnerable to cyber attacks.
For the banks, it’s the liability for non-compliance when the intermediary messes up. And there’s another problem: KYC registries are in the business of monetizing your data. And they take power away from their customers: the banks.
Google’s slogan is “don’t be evil”, but their business model is increasingly incompatible with it. At the very least because all governments are incentivized to pressure them into giving them data. In banking, everyone knows Experian is a necessary evil.
We’re offering an alternative.
Tradle’s KYC network allows banks to share data with the help of the blockchain. The blockchain (while not sharing the data), makes the KYC process highly auditable. This makes compliance officers and regulators happy. It also allows Tradle to avoid becoming a data intermediary, and put the customer in the middle; solving data privacy issues.
And this works exactly the same between divisions of the same bank, that today often don’t share KYC data.
Six weeks ago we made a bold statement: three pilots by Demo Day. At the time, we were a bit naive. We still needed to talk to regulators, to compliance officers, to understand the difference between commercial and retail KYC, between onboarding and refresh, and the nuances of KYC in different retail products. Many of you and your colleagues helped us with this.
We have had successful presentations to Rabobank’s board and three stakeholders want to run pilots with us. We are also beginning discussions with Lloyds about what a pilot would look like.
What we need now is to understand the criteria for success for each pilot. We need to understand what resources on both sides will be required, what integration would be needed and what security requirements need to be met. In six weeks, I plan to say “with your help we got three pilots started in the right way.”
In order for that to happen, we need to create a detailed action plan with you. We need people who have done pilots before, who have helped startups do pilots before, and helped with integration into banking systems.
Both in Lloyds and Rabobank, we have people who are very excited about this. And I think you all know how excited Tradle can get. And what we’re asking you, is to help us to take things to the next stage.