Decentralised Compliant Data Trading for Banks

Abstract

Banks must comply with a complex set of regulatory and legislative requirements in order to be sure they know who they are doing business with. Current Know Your Customer processes are inefficient and costly, often being repeated by multiple banks. As such, financial institutions have a need to reduce the cost of compliance. Banks can reduce their costs through inter-bank Know Your Customer data trading. In this paper, we build upon an industry-strength, blockchain-based, Know Your Customer data sharing platform to facilitate a novel data marketplace by detailing a method of pricing data such that banks save money and are suitably incentivised to trade their data. The pricing model we detail enables banks to reduce the cost of document acquisition and verification by at least 45%, and even profit by providing documents. In addition, we discuss how decentralised pricing is realised through the use of smart contracts.