According to a report in Gulf News (English language), the CEOs Advisory Council of the UAE Banks Federation (UBF) has discussed the adoption of blockchain to enhance know-your-customer (KYC) processes at banks.
Abdul Aziz Al Ghurair, Chairman of UBF, said: “As part of our efforts aimed at creating and sustaining a thriving banking ecosystem, we have undertaken a number of initiatives and new endeavours, such as the adoption of blockchain into KYC process.”
Aref Al Ramli, chairperson of UBF’s Digital Banking Committee, Senior VP, Head of Digital Banking and Innovation at Mashreq Bank made a presentation to the meeting on “the Digital Banking Committee study about Blockchain which explores opportunities for creating an industry standard to digitise various processes within member banks, and the potential functions that can be leveraged by the technology, including client onboarding, cross-border transfers, payments, and compliance reporting, among several others,” the report says.
Chairman, Al Ghurair also said at the meeting, “With advancements in technologies continuing to shape customer needs and expectations, it has become all-important for the banking industry to be at the forefront of innovation. The emerging technologies also present new opportunities for banks to create new revenue streams, which will in turn drive sustained business growth.”
UAE banking increases use of blockchain
As previously reported by Cointelegraph, in November the UAE’s AI and Blockchain Joint Working Group hosted an annual meeting that concluded with the launch of two initiatives intending to boost blockchain and artificial intelligence (AI) development. At the meeting, participants considered strategies to attract foreign investments and build a necessary infrastructure by using AI and blockchain. And in the same month, Abu Dhabi-based Al Hilal Bank completed “the world’s first sukuk transaction” based on blockchain technology. Sukuk is a legal tool that is known as “sharia compliant” bonds, which allows investors to generate returns in compliance with Islamic law.