There are strict onboarding requirements concerning customer data on identity proof, residency, marital status, source of wealth, occupation, and business interests.
It is tedious to collect, retrieve and share the customer data to comply with various regulations. Apart from this, automated clearing houses and automated customer account transfer systems take multiple days involving manual intervention and multiple databases.
Blockchain can tackle the onboarding challenges by storing customer profile data in a secure manner and sharing it only with the trusted parties.
Any party to the transaction can audit the customer (KYC) data on blockchain. The technology also simplifies the process of compliance with anti-money laundering as it enables an audit trail for all the transactions related to a customer profile.