KYC optimization using Block chain Technology

HDFC Bank Ltd.
5103 Branches 11,766 ATMs 2748 Cities 104,154
Employees

SWOT Analysis
Weaknesses
Opportunities
Threats
• Doesn’t have a strong
presence in rural areas
• Bank focuses mostly on
high end clients
• Fluctuations in share
price, thus uncertainty for
investors
• NPA increased from 0.18%
to 0.2%
• Increase of non-banking
financial companies
• ICICI poses major threat in
expansion on the bank
• Modernization of Govt.
banks
• Best asset quality than
other banks, hence better
profit growth
• Good reputation at
maintaining corporate
salary accounts
• Recovery of bad debt is
higher
• Strong financial position
thus, greater scope of
strategic alliances
• Largest private banking
sector in India
• ATM is compatible with
all domestic and
international visa
• Highest degree of
customer satisfaction
• Attrition rate in HDFC
Bank is low
Strengths

Organizational Structure
Managing Director
Country Head - Branch
Banking
Zonal Head
Cluster Head
Branch Manager
PB authorizer
Teller Authorizer
Relationship Manager -
Imperia
Relationship Manager -
Preferred
PB Sales
Teller

Analysis is done on the basis of last five years of data of financial ratios.
Year: 2015-2019
Fundamental
Analysis
HDFC Bank Ltd.

Introduction to
Project - Implementing
Blockchain technology
on KYC
7

Objective:
To analyze the use of blockchain technology
in managing KYC and Re-KYC compliance of
the customers and bankers in order to
optimize the whole KYC Compliance
Procedure
8

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Blockchain Technology
Distributed Ledger
Technology
Increases Efficiency
Rich Experience
Transparency
Decentralized
Cost Effective
Enhances Security Blockchain
Advantages of the ledger technology

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KYC (Know Your Customer)
Verification of
customer
Cumbersome
process
Security concerns
Customer’s
Frustration
Resource wastage
Compliance
Duration
Banker’s
Frustration
KYC
Disadvantages of KYC Compliance System

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Traditional KYC Process
Customer
Bank 1
Bank 2
Bank 3

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Need of Blockchain Integration
12
Lack of KYC
Standards
Compliance
taking longer
Chain of bankers
Contacting too many people
within the bank
Security Concerns

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Blockchain Enabled KYC Process
Bank 1
Client
Blockchain
Bank 2
1 - KYC Documents
2 - Performs KYC
3 - Stores KYC
4 - Client’s Token
5 - Give Access
6 - Checks KYC
1
2
4
3
5
6

Sample size of 108 responses
Graphical representation of
questionnaire followed by
findings and limitations
Primary Data Collection
Questionnaire
Findings and Limitations
Research Design

KYC optimization using Block chain Technology

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Findings and Limitations
KYC
+
Blockchain
Findings Limitations
The process is
secured and time
efficient
Elimination of
3rd Party, good
for Indian Market
Less use of
paper, saves
nature
A nascent
technology,
association with
bitcoin
Authorization of
third party as
clearing house

www.companyname.com
● Pachaiyappan, V. and Kasturi, R. “Blockchain
Technology (DLT Technique) for KYC in FinTech
Domain: A survey [“International Journal of
Pure Mathematics”, Volume 119 No.10 2108,
259-265]
● Moyano, J.P. and Ross, O. (15
November 2017), “KYC
Optimization using Distributed
Ledger Technology” [“Bus Inf
Syst Eng 59(6):411-423
(2017) ”]
● Tata Consultancy Services,
“Reimagining KYC using
Blockchain Technology” [White
Paper]
● Moyano, J.P., Thoroddsen, T.
and Ross, O. “Optimized and
Dynamic KYC System Based on
Blockchain Technology”
● https://www.business-standard.com/company/hdfc-bank-
4987/information/compa ny-history
● https://assets.kpmg/content/dam/kpmg/xx/pdf/2018/03/kpmg-blockchain-
kyc-utili ty.pdf
● http://newagebankingsummit.com/europe/4-key-advantages-of-using-
blockchain-i n-banking/
● https://www.ibm.com/blogs/blockchain/2018/09/blockchain-for-kyc-game-
changi ng-regtech-innovation/
● https://www.db.com/newsroom_news/2017/deutsche-bank-partners-with-
ibm-forblock-chain-based-shared-kyc-platform-en-11726.htm
● http://www.forbesindia.com/blog/technology/kyc-blockchain-will-change-
how-bu sinesses-think-about-identity/
● https://www.hdfcbank.com/aboutus/News_Room/hdfc_profile.htm
● https://www.hdfcbank.com/personal/products
● https://www.hdfcbank.com/aboutus/general/Businesses.htm
● https://www.marketing91.com/swot-analysis-hdfc/
● https://www.moneycontrol.com/financials/hdfcbank/financial-graphs
● https://www.stockaxis.com/analyzer/bank/HDFC-Bank-Ltd-100180
References

Work Done During Internship
21

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Under Personal Banking
Under PB Sales Under PB Authorizer
● Clearing cheques
● Helping customers with
filling and depositing
forms
● Helping customers read
and understand their
passbook statements
● Fill FATCA forms
● Opening accounts
● Customer Point
Verifications, SB Profilers
● Welcome callings, Credit
card callings etc

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Under The Project (KYC+Blockchain)
● Received a list of approximately 500 customers of the HDFC Bank, Industrial Area Phase
1 branch
● Phoned each customer one by one for getting their Re-KYC done for the accounts they
have in the bank
● The list consisted of different types of customers namely INDIVIDUAL, SOLE
PROPRIETOR, HUF, PARTNERSHIP, PRIVATE/PUBLIC LTD., TASCs
● Paperwork needed for each type was different and can vary according to the bank
● I managed to finish calling all 500 customers in a span of approximately ten days
● I continued to do the follow ups after informing customers about the Re-KYC so that it
gets done as soon as possible
23

KYC optimization using Block chain Technology

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