https://lnkd.in/epm8H-QtAkhil Rao, in his post regarding BIS Bulletin 87, suggests tokenization as a counter to the decline in correspondent banking. This drew a mildly terse response from my great friend, Bob Blower. While Bob's infinitely more informed in these matters than I (or most other earthlings), I have to say I'm something of a fan of tokenization. In fact CertiQi is working actively on a 𝙥𝙧𝙖𝙘𝙩𝙞𝙘𝙖𝙡 platform for achieving it.
That said, I agree with Bob that it's not the central issue, and that use of data most certainly 𝙞𝙨. The paucity of information available to payment intermediaries was a principal driver in the increased risk that led to the decline in correspondent banking.
Transparency through effective data sharing re-enables correspondent banking by creating visibility of every aspect of a transaction, from the KYC stack to the shipping and invoice documents. And it does it without the need for RFIs or duplicated effort. 𝘽𝙪𝙩 𝙞𝙩 𝙖𝙡𝙨𝙤 𝙢𝙖𝙠𝙚𝙨 𝙢𝙤𝙧𝙚 𝙚𝙛𝙛𝙞𝙘𝙞𝙚𝙣𝙩, 𝙘𝙝𝙚𝙖𝙥𝙚𝙧 𝙖𝙣𝙙 𝙛𝙖𝙨𝙩𝙚𝙧 𝙥𝙖𝙮𝙢𝙚𝙣𝙩 𝙢𝙚𝙩𝙝𝙤𝙙𝙨 𝙨𝙖𝙛𝙚𝙧 𝙖𝙣𝙙 𝙢𝙤𝙧𝙚 𝙚𝙖𝙨𝙞𝙡𝙮 𝙞𝙢𝙥𝙡𝙚𝙢𝙚𝙣𝙩𝙚𝙙.
The eKeyiD platform does this by interfacing with existing banking systems to allow data to be shared instantly, securely, and without compromising privacy. It achieves the balance of Privacy versus Transparency (PvT) by granularity of access that's controllable by the individuals who are its objects.
So, tokenized or not, we can make correspondent banking viable again, but do we still need it? End-to-end transparency, backed by in-depth auditability through a secure distributed storage platform such as DotLedger, allows compliant payments to flow by more direct routes. Not only that but, by structuring whole-business information into ISO 20022, rather than over-focusing on banking, we can join the dots to make a world commerce model that connects payments to the assets to which they refer.
And then tokenization becomes the enabler that Akhil envisions.
But right now, let's not fight electric lighting by trying to make the gas lamps burn brighter.
#CertiQi#ISO20022#correspondentbanking#tokenization#payments#shareddata
Managing Director | Payments | ISO 20022 | Industry Consultant | Fintech |
Next generation correspondent banking.
Key takeaways
• Existing correspondent banking processes have struggled to adapt to new regulatory and supervisory requirements, posing questions on the future of the correspondent banking model.
• The tokenization of correspondent banking, as embodied in Project Agorá (BIS (2024b)), could unlock streamlined pre-screening and atomic settlement, and pave the way for superior customer verification and anti-money laundering (AML) procedures.
• Tokenization could substantially reduce duplication and miscoordination, thereby revitalizing cross border payments by fostering a robust network of correspondents and corridors.
Bank for International Settlements – BIS Bulletin - https://lnkd.in/gj7bC7qw#payments#tokenisation#rln#banking#financialservices
🔍 𝐓𝐡𝐞 𝐑𝐞𝐬𝐞𝐫𝐯𝐞 𝐁𝐚𝐧𝐤 𝐨𝐟 𝐈𝐧𝐝𝐢𝐚 𝐢𝐬 𝐬𝐞𝐧𝐝𝐢𝐧𝐠 𝐚 𝐜𝐥𝐞𝐚𝐫 𝐦𝐞𝐬𝐬𝐚𝐠𝐞 𝐭𝐨 𝐟𝐢𝐧𝐭𝐞𝐜𝐡𝐬: 𝐓𝐚𝐤𝐞 𝐊𝐘𝐂 𝐬𝐞𝐫𝐢𝐨𝐮𝐬𝐥𝐲!
📢 In recent meetings, Reserve Bank of India (RBI) officials emphasized the importance of strict adherence to customer verification guidelines. The central bank insists on using 𝐯𝐢𝐝𝐞𝐨 𝐊𝐘𝐂 𝐚𝐬 𝐭𝐡𝐞 𝐩𝐫𝐢𝐦𝐚𝐫𝐲 𝐦𝐞𝐭𝐡𝐨𝐝 𝐟𝐨𝐫 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐨𝐧𝐛𝐨𝐚𝐫𝐝𝐢𝐧𝐠, with offline Aadhaar validation, centralised KYC, and documents via Digilocker as supplementary checks.
𝐊𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬:
• Strict KYC guidelines are here to stay.
• Video KYC is essential for digital customer onboarding.
• Supplementary checks include offline Aadhaar, centralised KYC, and Digilocker documents.
At Surepass Technologies, we're committed to ensuring compliance with these standards through our 𝐚𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐊𝐘𝐂 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬. Let's build trust and transparency in the fintech ecosystem together! 💪
#KYC#Fintech#RBI#Compliance#VideoKYC#DigitalOnboarding#CustomerVerification#Surepass#Trust#Transparency#FintechSolutions
Next generation correspondent banking.
Key takeaways
• Existing correspondent banking processes have struggled to adapt to new regulatory and supervisory requirements, posing questions on the future of the correspondent banking model.
• The tokenization of correspondent banking, as embodied in Project Agorá (BIS (2024b)), could unlock streamlined pre-screening and atomic settlement, and pave the way for superior customer verification and anti-money laundering (AML) procedures.
• Tokenization could substantially reduce duplication and miscoordination, thereby revitalizing cross border payments by fostering a robust network of correspondents and corridors.
Bank for International Settlements – BIS Bulletin - https://lnkd.in/gj7bC7qw#payments#tokenisation#rln#banking#financialservices
Considering purchasing a core banking platform on the cheap?
Think twice before compromising on quality. Investing in a robust core banking system with a proven track record, local presence, and the flexibility to quickly scale is paramount to safeguarding your business against potential risks. Cheap platforms may seem tempting at first glance, but they often lack the reliability, scalability, and technical sophistication needed to meet your evolving needs and regulatory requirements. Don't let short-term savings cost you in the long run. Choose wisely and prioritise quality, reliability, and innovation for sustained success.
Check out our Insight on the dangers of a ‘’bargain’’ price system: https://lnkd.in/du8g6aCW
Find out why #salmonfinancialholdings#fairmoney#esquirefinance and many more leading Institutions chose to partner with Oradian by visiting: oradian.com#FinTech#BankingSoftware#DigitalBanking#Oradian#Nigeria#Philippines
🔐 Looking for a seamless and legally valid mode of signature for your banking needs? Look no further! Introducing eMudhra's Bank KYC-based eSign, the ultimate solution that combines convenience and legality under the IT Act 2000/2008.
In today's digital era, the need for secure and efficient electronic signatures is paramount, especially in the banking sector. With eMudhra's innovative Bank KYC-based eSign, you can say goodbye to the hassles of traditional paperwork while ensuring compliance with legal requirements.
Plus, it serves as a robust alternative to Aadhaar eSign, helping prevent any potential breakdowns in the flow of transactions.
Here's why eMudhra's Bank KYC-based eSign stands out:
✅ Legally Valid: Rest assured, your digital signatures are fully compliant with the IT Act 2000/2008, offering you the peace of mind you deserve.
✅ Bank KYC Integration: Leveraging the power of bank KYC data adds an extra feature/option for customers in digital signatures, making the digital signature option more robust and reliable.
Embrace the future of digital signatures with eMudhra's Bank KYC-based eSign and experience a seamless, efficient, and legally sound way of conducting your banking transactions.
Ready to elevate your banking experience? Get started with eMudhra's Bank KYC-based eSign today! #eSign#DigitalSignature#BankingInnovation#eMudhra#LegalCompliance#ITAct2000#DigitalTransformationKarthic Kishore SAdarsh MvThouqeer Ulla KhanRahul Garg
The Financial Regulatory Authority FRA of Egypt has introduced a new requirement for non-banking fintech institutions and insurance companies to verify the ownership data of their customers' mobile phone numbers. The new regulation applies to Egyptian natural persons when concluding or renewing contracts as part of the procedures for verifying customer identity.
Affected parties will have a two-month grace period from when the decision comes into force to comply with the new requirements. The FRA's decision aims to enhance customer protection and ensure the integrity of digital transactions in these sectors.
#EgyptFintech#InsuranceTech#DigitalTransformation#CustomerProtection#RegulatoryCompliance
From the Bank for International Settlements – BIS comes this bulletin outlining the next generation correspondent banking
🔹 Existing correspondent banking processes have struggled to adapt to new #regulatory and #supervisory requirements, posing questions on the future of the correspondent banking model.
🔹 The #tokenisation of correspondent banking, as embodied in Project Agorá, could unlock streamlined pre-screening and atomic settlement, and pave the way for superior customer verification and anti-money laundering #AML procedures.
🔹 Tokenisation could substantially reduce duplication and miscoordination, thereby revitalising #crossborder#payments by fostering a robust network of correspondents and corridors.
The Central Bank of Bahrain has recently introduced new Open Banking regulations. All banking institutions holding data of legal entities, must comply with these regulations.
Have you found the right partner for your Open Banking journey?
Selecting the right open banking partner is crucial.
The open banking partner not only provides initial implementation but also commits to ongoing maintenance and the integration of updates in response to evolving regulatory changes.
Spire Tech, in partnership with Salt Edge, stands out as the top choice for banks seeking compliance, offering commitment both to ongoing maintenance and scalability towards next growth phases.
Get in touch to know more!
📧 info@spiretech.co
📞 +973 3955 0309
#SpireTech#SaltEdge#OpenBankingComplianceHub#SpireComply#OpenBanking#Fintech#DigitalTransformation#Innovation#FinancialServices#FutureOfFinance#Collaboration#Partnership
State Bank of Pkaistan issued Payment Systems Report for Q2-FY24, which showcases significant progress in Pakistan's payment ecosystem.
Mobile and Internet Banking remains the preferred mode of digital transactions for Pakistanis. The number of e-wallets registered with EMIs & m-wallets registered with Branchless Banking has also increased in Q2-FY24.
📌 82% transections executed through digital modes of total 816 million transections representing just 15% share by volume.
📌 18% OTC transections representing 85% transections by volume. (119/140 trillion PKR)
📈 Share of Digital transections can be enhanced if internet banking facilities provided to and used by corporate sector.
For details:
🔗https://lnkd.in/dKsGEbTs
See PR:
🔗https://lnkd.in/d9_d5Adb
Follow for further updates.
