Shared KYC

CDC, along with the Banking Industry and Capital Market institutions, is making headways on the path of digital account opening for capital market accounts of local resident bank account-holders after the success of this arrangement for RDA holders. The successful roll-out of this initiative was done with the collaboration between the two Regulators of our country, namely SBP and SECP, which is vital for the development of our economy. This “Shared KYC” channel among the market stakeholders will facilitate seamless digital capital market account-opening of local bank-account holders in the same manner as it is done for RDA holders. The pilot implementation of this project is now Live with 5 banks and 8 Brokers connected to CDC. CDC again acts as the information sharing bridge between Banks and Brokerage houses for sharing of local KYC information by Banks. Once this project is fully implemented with all the banks and capital market entities, it will make redundant the process of initiating KYC formalities every time a bank account-holder wants to open an account with any of the market entities. This solution will offer an attractive and safer alternative proposition of digital account-opening and investments to the tech savvy generations X and Z who are already inclined towards the popular digital investment avenues of crypto-currencies. Furthermore, the solution will help stimulate financial inclusion and capital market outreach to about 50 per cent of the local populace living in rural and far-flung areas. The solution is envisioned as a definitive method for enabling the peripherally located population to also take part in the investment scene on the capital market without having to travel all the way to a brokerage house physically.