More on the UK centralized KYC initiative
More on previous post and the underlying intention behind the UK governments intentions.
Anderson also said that the use of standardised APIs in banking would create a much more public source of data about customers and said there would be certain parallels with a ‘know your customer’ (KYC) data sharing initiative that is being developed by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Basically what I take from these posts is that UK is supporting the SWIFT initiative to better co-ordinate KYC between banks with a centralized KYC database with free access to all participants. The intention here is to reduce the due diligence effort involved in taking on new customers that have already been onboard into the banking system. This aspect can only be better for consumers, and hopefully reduce bank costs. The latter worries me. This ‘new KYC database’ would only reduce costs, if existing screening efforts were to be eliminated. That would be a harder task.