Standard Chartered has teamed up with Know Your Customer Limited to launch a KYC verification system for small and medium-sized enterprises (SMEs).

The initiative utilizes the Hong Kong Monetary Authority’s (HKMA) Commercial Data Interchange (CDI), aiming to enhance the efficiency and accuracy of compliance checks during SME onboarding processes.

Through this system, Know Your Customer’s technology accesses real-time company registry data through an API connected to CDI. This allows Standard Chartered to automatically gather necessary information for opening business accounts. Notably, the system facilitates mapping out complex ownership structures to identify ultimate beneficial owners—a crucial aspect of due diligence that often requires significant resources.

Simplifying Loan Applications and Account Opening

Officials from Standard Chartered state that the integration of automated KYC processes is anticipated to streamline loan application reviews and expedite account opening times. The bank also highlights its use of alternative data sources within CDI to provide more accurate credit assessments, thus supporting remote applications without face-to-face interactions.

Supporting HKMA’s Digitalization Efforts

Know Your Customer’s representatives emphasize that their technology aims to mitigate delays caused by manual compliance procedures, especially for SMEs. They explain that the company’s infrastructure integrates global registry data with automation to improve access to financial services in regions with complex regulatory environments.

Operational since 2015 in Hong Kong, Know Your Customer offers compliance technology to financial institutions across 18 markets and 11 sectors. It maintains local teams in Singapore, London, Dublin, and Shanghai, collaborating with various data and technology providers to bolster entity verification processes.

Both companies view this initiative as part of their contribution to the HKMA’s digital transformation agenda within Hong Kong’s financial services sector.