KYC: The Problems It Creates and What This Company is Doing About It
If you had been involved in any banking or trading account applications lately, you would have gone through a KYC process without realizing it. Short of Know Your Customers, KYC is a client identification program that verifies and maintains records of any businesses’ clients.
Reserve Bank of India (RBI) was the first to introduce KYC norms back in 2002. Simply put, it was, and still is, a guideline to direct all banks and financial institutions to properly identify the clients before approving any new account openings. One of the key reasons to this was to prevent financial and identity related issues such as money laundering, terrorist financing and theft. Banks were also required to periodically update their records.
However, most of the KYC processes are not as user friendly. As a matter of fact, Thomas Reuters, in a survey done on over 800 financial institutions, found that 89% of their corporate customers had not had a good KYC experience, and 13 percent had changed their financial institution relationship as a result. Some customers of smaller deposits and lower transactions even felt that banks were harassing them with the process, which in their thoughts are more applicable to those with high-value transactions.
Xenchain, a blockchain-based Digital Identification Management app developed by Singaporean-based company Xendity, aims to solve that issue once and for all. With their eKYC app, users will be able to leverage on super-intelligent text identifiers, facial recognition and digital ID scanners, all with just their smartphones. This can be done remotely, and Xenchain also has a social validation score built-in, adding weight to the validity of the information.
One key difference that Xenchain brings to the table is the introduction of Xencoins, which will be awarded to XenValidators when they verify the information of the users, know as XenUsers. Also, whenever XenDataConsumers such as government entities and financial institutions request any information from a XenUser, he or she will also be credited with XenCoins as well.
According to Stratistics MRC, the Global Identity & Access Management market is estimated for $7.94 billion in 2016 and is expected to reach $20.87 billion by 2022. Xenchain is poised to tap into their huge market, as it’s primary client bases are in digital banks, digital currency exchanges, ICOs, travel, money transfers, gaming, healthcare, e-commerce, and social media.
If you want to grab a piece of this $21 billion pie, good news! Xenchain is having their token presales right now. So head over to https://xenchain.io and register your interest.
