Moody'southward Corporation has said that a new blockchain-based Know Your Client (KYC) platform in the United Arab Emirates is credit positive for the nation's lenders.

Co-ordinate to a report by local media outlet The National on Feb. 26, the ratings agency has said that the platform will improve asset quality and boost profits.

As Cointelegraph reported last week, a consortium of six banks, holding nearly 45% of total banking assets in the UAE, was formed this calendar month to share verified customer data using blockchain engineering science.

According to Moody's, the new KYC platform will ameliorate compliance with local and international regulations, while keeping customer information secure. Moody's said:

"We expect the KYC blockchain consortium to support the asset quality of UAE banks primarily by reducing operational take a chance. The platform volition facilitate faster and more secure onboarding, and exchange of authenticated and validated digital customer data and documents through distributed technologies powered past blockchain."

Securing customer data against breaches

Apply of blockchain technology tin can likewise help to guard confronting data breaches, every bit Moody's explained:

"The platform will support regulatory oversight of banks' collection and management of KYC data. We also expect it to help credit chance management with meliorate data for client underwriting and debt drove."

Moody's likewise expects other institutions in the region to gradually join the platform, which it says "has the potential to become an important component of the country's digital ecosystem."

The KYC platform will exist developed in partnership with blockchain platform and applications provider Norbloc and is expected to scroll out in the first quarter of 2022.