The Otkrytiye bank implemented the project on exchange of bank KYC questionnaires of the distributed register

"AK BARS" the Bank, Sberbank and Otkrytiye Bank implemented at the beginning of 2017 a pilot project on fast and safe exchange of bank KYC*-questionnaires using technology of the distributed registers. It is the first step on the way to use of open program interfaces (API) of banks using which it is possible to increase operational efficiency of hardware-software infrastructure.

The legislation and the international practice requires from financial institutions to know the complete list of necessary information on each bank partner. Still banks continue to exchange KYC questionnaires on paper with the signature, printing and the corresponding sluggishness. The project replaces manual process of exchange of paper KYC questionnaires of an electronic analog (Know Your Customer or know the client). The developed software provides a single window for change of the KYC questionnaire among all the partners. The blockchain provides identity of financial institution in the electronic environment, reliability of the distributed data, gives an opportunity to monitor change of KYC questionnaires in time.

The ciphered questionnaire remains in the distributed unchangeable storage. The link to the questionnaire is stored in transaction of a blockchain. Distribution of keys for interpretation of the questionnaire is performed using additional cryptographic acceptances. They allow to guarantee that only the partner can read the questionnaire. At the same time the information about that how many and what else partners the bank has is unavailable to him. The structure of interaction between banks remains in a secret. The prototype is implemented based on the MasterChain platform.

"Development of interbank KYC questionnaires improves interaction between financial institutions, does it cheaper and is more transparent. The solved problem seems boring, but believe, it opens doors to further reduction in cost of interbank interaction", - the project manager of the distributed register "the AK BARS Digital technologies" Sergey Ukustov noted.

"Automation of exchange of KYC questionnaires will allow is distributed to store and exchange all necessary information on the partner who is required for his complete identification and receiving understanding of business, its main owners, a source of profit and other parts thanks to which identification of potential sources of threats is provided", the head of project office of the innovative development of PJSC AK BARS emphasized BANK Damir Galiyev.

"The executed pilot is one of the first steps to practical self-organization in the bank environment which will lead to absolutely new form of interaction of credit institutions in our country and beyond its limits, - the director of the department of development of the systems of retail and small business of Otkrytiye bank Andrey Sabynin says. - The technology of the decentralized registers solving a problem of trust and accuracy of the information between different players of the banking market is capable to make a revolution in the current understanding of a role of the regulator and the state as only sources of reliable information, to raise degree of trust of banks that will lead to closer cooperation of credit institutions with each other.