THE NEED FOR A SHARED KYC UTILITY IS UNDENIABLE; EXPERTS ACROSS THE FINANCIAL SERVICES SPECTRUM HAVE BEEN VOCAL ON WHY IT IS NEEDED.
GREG CARTER CHIEF EXECUTIVE OF GROWTH EXECUTIVE, WRITING IN CITY AM IN JULY 2019 MAKES THE POINT QUITE CLEARLY;
“For a service sector dealing almost solely with numbers and structured data, the world of small business lending could not be better suited to disruption by digital machines.
With a single “data passport”, SMEs could easily apply for finance at dozens of providers with the click of a button.
While challengers and fintechs are happy to lead the innovation in business lending, without structural reform of banking capital rules, we are unlikely to see strong competition from banks.
This is a challenge that Carney’s successor must tackle if the UK is to unleash the full potential of its SMEs.”
THE GLARING LACK OF A SHARED KYC UTILITY IS OF COURSE, CAUSING EYE-WATERING AMOUNTS OF BANKING MISCONDUCT COSTS;
Mark Carney, Governor of the Bank of England (March 2017), Cost of Compliance 2017 Report
“Global banks’ misconduct costs have now reached over $320bn – capital that could otherwise have supported up to $5trn of lending to households and businesses.”
And The Bank of England has gone on record that better digital identification is essential.
Future of finance review on the outlook for the UK financial system; What it means for the Bank of England. Chaired by Huw van Steenis, June 2019
“Better digital identification will be essential for households and firms to benefit from the digital economy. The high cost of identification means finance is expensive and underserved;…considering how central identification is to accessing finance, curbing cyber-fraud and reducing costs the Bank may wish to be an influential champion of better trusted digital identification where the UK has lagged…… This is likely to include supporting ways to build upon and open up high-quality data sources, tagged with unique identifying numbers, such as passports, driving licences, social security and tax numbers. It is also likely to require a change in how the government thinks about the liability and reliability of using these data sources. More broadly the role of financial firms collaborating on digital identification merits consideration.”
If you share our ambition, then Finch Global is keen to work with you. We are working with institutions, businesses and like-minded individuals to deliver this national service. If you would like to know to more or would like to share your thoughts with us please call Mark Casey on +44 333 772 1815 or email him on Mark@finch.global.