October 25, 2017
Effectiveness and Efficiency; a Compliance Officer Christmas Wish
December 5, 2017

The future of fintech, law and online commerce rely upon identity of clients

A new class of digital currency!!….Have you heard it before? What if you could participate in a decentralised digital currency system? I think we have all heard that one too. Novelty products, with their rights and wrongs, have the power to drive attention. Markets react to the possibility of money making trends and the potential of new revenue streams; as it is the case, it is not only the product we look at, but the hard, good quality technology that is the enabler of these products. Blockchain.

Are you able to visualise products that can be offered, sold, traded, transferred or simply accessed easily? Small companies seem to stall with paperwork; modern large organisations use super powered databases but still encounter problems – the latter have been steps of the long road that now takes us to blockchain.

If we were ever (banks have started projects where conflicting corporate interests have triggered the departure of some of the participants) to see a blockchain powered business succeed, would we be closer to believing this is actually possible? Of course, there are issues around Data Protection, Security, and now GDPR, however does that mean that we should not consider the ideal scenario of systems operating on blockchain or a form of closed- source software running on centralised, private databases.

The possibility of interaction with digital currencies, or other products/services in a p2p, decentralised, secure environment sounds appealing to today’s Fintech segment; what if you could integrate merchants, exchanges, and say electronic wallets? Improve your liquidity? The possibilities are endless.

Imagine an environment where risks are mitigated by a type of implementation that collectively reduces the complexity of multiple ID and verification audits while increasing the security, provability, and transparency of these checks; that is what the Blockchain is about. Gathering information in the form of a system, where information is provided, checked and verified by a multi-party environment that facilitates the verification of information to reach a conclusion.   A more technical definition would normally be structured around computers acting and verifying information held in a ledger, where tokens interact to provide a specific view or a response on the authenticity of a ledger, in a decentralised manner – in a wide environment. Incentives would normally exist for participants to contribute with good quality information and of course to ensure that the participants add good quality valuable information. However, the important part is not how we can explain what this is, but surely what comes from it.

You are probably wondering, what does that mean for you? Participating in blockchain can improve your network access to products, and eventually if not eliminate, help to contribute on the reduction of onerous clients’ KYC requests. Potentially clearing all those difficult false positives, that were so close to being a Sanctions hit, which unfortunately you had to turn down as there was no way to clear them.

At QGen we are supporting technology and different options to ensure you can do business on easier, cheaper and faster ways. Please contact us to discuss your interest on Blockchain; we want to know how we can help you.