Blueprint for KYC data sharing in the UK

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The UK's Payment Strategy Forum has delivered a blueprint for the future of the nation's payment system, setting out design and implementation approaches for the construction of a new 'National Payments Architecture'.

From PSF lays down blueprint for new UK payments architecture

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Since publishing our Strategy, we have reviewed the approach and agreed on the following detriments as focus areas for the proposed data sharing framework:

1. Inclusion of bad actors: Obtaining sufficient KYC information to identify bad actors requires the use of multiple external data sources and systems during on-boarding and ongoing due diligence. Incomplete, in-accurate or out-of-date SME customer data hinders the detection of bad actors.

2. Poor customer experience for good actors: Limited data sharing among the PSPs and other sectors such as utilities and telecommunication providers lead to significant duplication of effort if a customer moves to another provider or extends their products. data hinders the detection of bad actors.

3. Barrier for small PSPs: Privileged access to SME data can be viewed as a barrier for small and new entrants, narrowing access and weakening competition. data hinders the detection of bad actors.

4. Inefficiency in the SME KYC process: Customer identification processes can be complex, protracted, and expensive, despite not being a key competitive differentiator for PSPs and providers in other sectors. data hinders the detection of bad actors.

5. Lack of trust: The fear of fraudulent actors potentially being able to penetrate the digital environment and get access to customer data leads to an erosion of trust in society.data hinders the detection of bad actors.

The plan is to start with SMEs.