International Private Banking Systems, a specialist provider of wealth management software for the private banking sector, has partnered with Liquidus, a regtech identity solutions provider to the financial services sector. The agreement covers the Caribbean region and opens up the possibility for IPBS customers to benefit from an estimated 75 per cent reduction in onboarding time and cost with improved AML and KYC compliance.
Liquidus is a Bahamas based technology company that delivers digital identity onboarding and compliance solutions. The firm’s technology creates a ‘master digital identity’ of end users on Liquidus’ proprietary Hyperledger Fabric blockchain which keeps them in a ‘constant state of compliance’. This can automate the KYC and AML validation process, and open up the end users to the burgeoning market of digital assets and payments.
With private banking and wealth management being driven towards the digital realm by both customers and regulatory bodies, IPBS sees huge potential in the partnership. Royal Fidelity (RF) is the first customer to pilot the solution across The Bahamas, Barbados and The Cayman Islands.
Michael Anderson, President and CEO to the RF Group, says: “IPBS has been providing us with wealth management and banking services since its inception in 1997. In addition to helping expedite and manage the ongoing KYC process for our existing clients, the ability to safely and effectively remote onboard clients from across the Caribbean region is a key benefit of this latest offering. Beyond KYC and AML, Liquidus’ solution is helping us to provide custody services for digital securities, as well as integrate digital currency solutions with our core banking services. This dramatically changes our strategic offering to our customers.”
The Liquidus solution integrates with the IPBS private banking and wealth management software and will allow IPBS customers to benefit from:
• Digital onboarding capabilities to meet the growing demand from customers to open accounts via simple online web forms.
• Up to 75 per cent reduction in onboarding time & compliance cost by digitising the process.
• Automation of one-off and ongoing KYC and AML validation checks including international sanction screening.
•Automation of the compliance process to meet regulatory requirements.
• A master digital identity of each customer on the Liquidus blockchain that enables greater control for individual customers over their data.
• Customer ‘wallets” attached to each master digital identity, opening up the possibility of managing digital currency as easily as mainstream currencies.
• A payment service provider license to offer financial institutions multiple payment mechanisms.
Matt Hinkley, Founder and CEO of Liquidus, says: “Financial institutions and asset management companies face a competitive environment due to the increased utilisation of technology and are being driven to increase customer satisfaction, improve compliance and offer new products and services. A 75 per cent reduction in onboarding time and compliance costs is revolutionary and this is just the initial advantage of using a blockchain based infrastructure. Reducing onboarding barriers can result in scaling a financial institution into new markets and the ability to manage a lot more clients with the same internal staff. Our technology will change the way financial institutions work, offering early adopters the opportunity to take significant market share. We’re really excited about the road ahead with IPBS, their experience together with our onboarding solution; we believe enormous value can be generated within the Caribbean markets.”
Bruce Raine, Founder and President of IPBS, says: “Our customers are keen to embrace digital onboarding especially in light of the Covid pandemic which is driving new contactless and digital processes. By working with Liquidus, we will make it much easier for our customers to do business with new clients. There is a lot of synergy between the two companies and we think this could be the beginning of something really progressive for the industry.”