Envoy Group, a blockchain supply chain company, has declared collaboration with KYC Hub. This team-up intends to leverage the KYC Hub’s business verification, anti-money laundering, workflow management, and know your customer (KYC) solutions to support Envoy Group onboard its legacy clients on the company’s trade platform. With a flourishing $13 million raise and launch, Envoy Group has boarded on several integrations and associations, including a team-up with PurpleTRAC, Pole Stars governance solution, early on in March.

Envoy and KYC Hub Blockchain Supply Chain Partnership

Envoy Group, blockchain supply chain solution, is created upon the enterprise software company, R3’s Corda blockchain platform. With this blockchain enrichment, Envoy Group has improved global supply chains and began about new levels of efficiency to global trade finance. The company has been capable of achieving this by concentrating on inoculating essential liquidity, promoting digitization, and encouraging transparency.

KYC Hub, on the other hand, is a UK-based startup that utilizes its advanced data intelligence and AI tools to assist firms in curtailing the threat of financial crimes and fraud. The Hub presents its clients with valuable tools such as customer risk rating, transaction monitoring, pattern-based entity matching, payment screening, and a slew of other products like biometric verification solution, corporate verification, and monitoring, amongst many others.

By coupling up with KYC Hub, Envoy will also be capable of employing these tools to close the trade finance gap, eliminate financial crimes, improve trust, and get rid of fraudsters. KYC Hub automated tools also indicate that Envoy can expedite the verification processes while restricting operational risks for its consumers.

Conversing on the merits of this partnership, The CEO of Envoy Group, Lee Tarone, stated that:

“Trade finance cannot be truly revolutionized without transparency, trust, and proper due diligence. We are excited to work with KYC Hub, who have an arsenal of tools to help us close the $1.5 trillion trade finance gap while mitigating against risk and bad actors – the things ultimately holding up the industry today.”

The Co-founder of KYC Hub, Jay Rao, also chimed in:

“We are proud to be working with a company who aim to provide a simple and effective solution to its clients; we are delighted to join them in this journey [….] In an industry where paperwork means possible fault, fraud, and risk – we can automate compliance and manage operational risk for Envoy’s clients using real-time financial crime data. On top of that, we are connected to global data sources and can verify individuals and companies from 180 different countries.”

Blockchain Can Revolutionize KYC

Blockchain technology, on its own, has the potential to transform KYC processes. KYC is a practice often carried out by financial institutions and includes the assertation of the consumer’s identity before the production of an account. This may need potential consumers to present different documents for verification; this isn’t a one-time submission because many banks will have to renew customer’s information periodically.

Presently, many financial institutions all across the globe are striving to meet up with the ever-increasing rate and scale of regulatory change. KYC compliance processes are growing more costly and time-consuming as banks are forced to process sometimes as many as 100 documents/KYC manually, and it could take 24 days to onboard new clients. The slow built-in times, continually evolving requirements, and delayed document processing leads to unsatisfactory service and disgruntled consumers.

Nevertheless, with blockchain integration, the KYC process could become excessively simplified. A blockchain-powered KYC platform will significantly streamline the data collection process and lead to overall improved operational efficiency, decreasing costs, and saving time. This platform will assist as a single source of the customer’s data allowing regulators to obtain their customer’s data overall financial institutions. As a consequence of this, consumer experience develops because bank clients will no longer have to give the same information repeatedly.