On March 02, 2023, the Pakistan Banks’ Association (PBA) marked a significant milestone by signing a project contract with the Avanza Group to develop and implement Pakistan’s first blockchain-based national eKYC banking platform. The signing ceremony took place at the PBA office in Karachi, showcasing a pivotal moment for the country’s banking sector.
The ceremony was graced by key figures including PBA Chairman, Mr. Muhammad Aurangzeb, who also serves as President of HBL; Mr. Akhter Javed, Director of BPRD at SBP; Mr. Tawfiq Hussain, CEO of PBA; Mr. Waqas Mirza, CEO of Avanza Innovations; and Mr. Omer Khan, CEO of Avanza Solutions (Pvt) Ltd.
The eKYC (electronic Know Your Customer) initiative is aligned with the State Bank of Pakistan’s (SBP) ongoing efforts to bolster the control infrastructure for Anti Money Laundering (AML) and Terrorist Financing (TF) in the country. PBA has been at the forefront of planning and managing this project on behalf of the banking industry.
This groundbreaking platform aims not only to strengthen AML controls but also to enhance operational efficiencies at participating banks. It promises to elevate the customer experience, particularly during the account opening process, thereby promoting financial inclusion across the nation.
Avanza Group’s eKYC platform, ‘Consonance,’ will serve as the backbone for this initiative. Utilizing blockchain technology, the platform will enable banks to standardize and exchange customer details securely and efficiently within a decentralized and self-regulated network.
With ‘Consonance’ in place, member banks will have the capability to assess both existing and new customers using data available across the platform. This will streamline Customer Due Diligence (CDD), reduce onboarding costs, and enhance the overall account opening experience, furthering the cause of financial inclusion in Pakistan.
Source: PBA