Standard Chartered has partnered with Know Your Customer Limited to introduce a KYC verification process for small and medium-sized enterprises.
The initiative makes use of the Hong Kong Monetary Authority’s (HKMA) Commercial Data Interchange (CDI), aiming to improve the speed and reliability of compliance checks during SME onboarding.
The system uses Know Your Customer’s technology to access real-time company registry data via an application programming interface (API) linked to CDI. This setup enables the bank to automatically retrieve and consolidate information required to open business accounts. One of the key functionalities includes mapping out complex ownership structures to help identify ultimate beneficial owners, an often resource-intensive part of due diligence.
According to officials from Standard Chartered, the integration of automated KYC processes is expected to simplify loan application reviews and shorten account opening turnaround times. The bank noted that it is leveraging alternative data sources within CDI to offer more precise credit assessments and support remote, non-face-to-face applications.
Automation to support HKMA’s digitalisation efforts
Representatives from Know Your Customer stated that their technology aims to address delays caused by manual compliance procedures, particularly for SMEs. They noted that the firm’s infrastructure combines global registry data with automation to enhance accessibility to financial services, particularly in jurisdictions with high regulatory complexity.
Know Your Customer, which began operations in Hong Kong in 2015, provides compliance technology for financial institutions in 18 markets and across 11 sectors. The company supports its tools with local teams in Singapore, London, Dublin, and Shanghai, and maintains partnerships with a range of data and technology providers to strengthen entity verification processes.
Both companies have framed the initiative as part of an effort to contribute to the HKMA’s agenda on digital transformation within Hong Kong’s financial services sector.
