Standard Chartered has collaborated with Know Your Customer Limited to introduce a KYC verification process for small and medium-sized enterprises (SMEs).

The initiative leverages the Hong Kong Monetary Authority’s (HKMA) Commercial Data Interchange (CDI), focusing on enhancing the speed and reliability of compliance checks during SME onboarding.

This system utilizes Know Your Customer’s technology to access real-time company registry data via an application programming interface (API) linked to CDI. This setup allows the bank to automatically retrieve and consolidate information needed for opening business accounts, including mapping out complex ownership structures to identify ultimate beneficial owners—an often resource-intensive aspect of due diligence.

Officials from Standard Chartered noted that the integration of automated KYC processes is expected to simplify loan application reviews and shorten account opening turnaround times. The bank highlighted its use of alternative data sources within CDI for more precise credit assessments, supporting remote, non-face-to-face applications.

Digitalization Efforts in Support of HKMA’s Agenda

Know Your Customer representatives explained that their technology is designed to address delays caused by manual compliance procedures, especially for SMEs. They indicated that the firm’s infrastructure combines global registry data with automation to enhance access to financial services, particularly in complex regulatory jurisdictions.

Operating since 2015, Know Your Customer provides compliance technology for financial institutions across 18 markets and 11 sectors, backed by local teams in Singapore, London, Dublin, and Shanghai. The company maintains partnerships with various data and technology providers to strengthen entity verification processes.

The collaboration between these two companies aligns with the HKMA’s digital transformation agenda within Hong Kong’s financial services sector.