Three companies shortlisted to establish common KYC platform

Wednesday, 1 July 2020 00:00 - - {{hitsCtrl.values.hits}}

Two local, one foreign company selected from about 36
Decision from Monetary Board awaited
RFPs to be released as next step to all companies

The Central Bank has selected three companies, two Sri Lankan and one foreign, to set up a common platform using blockchain technology so Know-Your-Customer (KYC) information can be securely shared across different banks.

A common KYC platform is seen as crucial by fintech experts to broaden Sri Lanka’s online transaction services, especially in the absence of a digital identity card system. The three companies were selected from 36 applicants, said Central Bank Payments and Settlements Director D. Kumaratunge, which included several foreign companies as well.

The names of the three companies have been forwarded to the Monetary Board for approval. The KYC platform will be built free-of-charge and is part of the Central Bank’s initiative to encourage fintech development in Sri Lanka. These measures also include a regulatory sandbox that was launched earlier this year to encourage financial institutions to partner with IT companies to introduce innovative tech solutions.

“Following Monetary Board approval a Request for Proposals will be released and that will be accessible to everyone, not just the shortlisted three companies. But it is very encouraging that foreign companies are also interested in setting up such systems in partnership with Sri Lankan regulators,” Kumaratunge added.