According to an announcement made on 1 March 2020, the Dubai International Financial Center (DIFC) and Mashreq Bank have partnered to launch Dubai’s first blockchain data-sharing platform. The platform would be supporting licensed businesses and organizations in opening digital bank accounts.
Digitalization and Ease of Doing Business
The bank has gotten rid of the traditional paper-based KYC to embrace a blockchain-centric one. On the other hand, DIFC’s role is to prepare new KYC records as a part of a company’s corporate license application. Once the nod is given by the customer, the record is shared with Mashreq through blockchain. Consequently, things ease down for the corporations as the process of KYC becomes simpler and thereupon, bank accounts could be opened instantly.
The bigger impact of the partnership is not limited to merely easing the process of availing a bank account. This will, in turn, boost the economy of the region by providing new companies with ease of doing business.
The partnership sought further support from other players like the fintech firm Norbloc which provided the blockchain platform Fides, Gowling WLG which was responsible for the legal agreements and Deloitte which provided Mashreq with program management.
Making Business More Attractive
Arif Amiri, Chief Executive Officer of the DIFC Authority said that the organization was committed to ‘providing financial institutions and businesses a platform in order to seamlessly undertake operations’.
For his part, the CEO of Mashreq Bank, Ahmed Abdelaal emphasized that their ultimate goal was to make the country a global financial hub. He further added that the initiative was a step towards fulfilling the ‘vision of the UAE Banks Federation, Smart Dubai, and UAE Central Bank to serve the greater good and promote ease of business’.