Blockchain and compliance, a couple with a promising future

Digital Safe: Successful Experience with Private Banks Opens Doors to Other Markets. The Compliance Revolution with Vincent Benon, CEO of Wecan.

After convincing the financial sector of an interest in having a digital safe on the blockchain that is unlikely to be compromised and simplifying the management of their compliance obligations, Geneva-based startup Wecan is tackling new markets. To finance its projects, it just raised 3.3 million francs after a around the table That attracted both historical contributors and future strategic partners such as Michelle Ripert. A Story of the Future with Vincent Benon, Founder and CEO of Wecan.

“The tool we developed has all the benefits of an ERP package, but it goes far beyond its functionality.”

Wecan 2 . episode soundAnd Turning the Table Thanks to the Renewed Confidence of Indigenous Investors, What Does This Mean?

The extensive work we have been doing for over a year with private banks and Independent Wealth Managers (IMM) to develop an infrastructure that allows them to manage their compliance on the blockchain, has proven conclusive. They can now manage all regulatory compliance restrictions on a single dashboard, in real time. In other words, take action to rectify errors and mitigate risks very quickly to comply with the requirements of regulators, and that is with ease. They are somehow taking advantage of a new generation of platform dedicated to compliance management which is being replaced by a systematic audit that exists today, that is, a subsequent review of a sample of data on a random basis aimed at detecting anomalies. Thus, it is a real paradigm shift as 13 private banks have been validated and 74 international financial institutions have agreed to participate in the first use case that started in March 2021. So it is a safe bet that other banks, other players in the financial industry, will follow.

Why are they?

On the other hand, because the tool we developed, Wecan Comply, has all the advantages of an ERP package, but goes beyond its functionality: it simplifies compliance and data sharing, while greatly enhancing security and traceability. It is based on the blockchain, an incorruptible infrastructure that allows for a non-falsifiable timestamp that no one can modify the entered data afterwards. For all financial players, especially IFMs, for whom compliance is a heavy burden on their management, migrating to a data-sharing platform where all counterparties can access updates instantly, smooth and fully transparent information circulation is a very noticeable competitive advantage. They can at any time choose which counterparties to share their data with. It looks like a digital safe where all the data is stored and encrypted and therefore cannot be read by a third party. The key, like the one entrusted by the landlord to the tenant, can be taken back at any time.

“All stakeholders get the information, it is very difficult to cheat.”

A Safer, Simpler But Also Less Costly Compliance Tool: Can We Talk About “Low Cost” Compliance Management?

Simpler, safer and less expensive for all players in the financial industry value chain, without a doubt. In the business model applied to our first use case, private banks shared from a few tens of thousands of francs to a few hundred thousand depending on their size with a much lower annual license than a management software package license. GFIs pay nothing.

New non-bank investors participated in this capital increase. Are they passive or strategic partners?

Investors from other industries have already joined us. This is the case of Michel Riber, founder of La Réserve and activist in sectors as diverse as the hotel industry (La Réserve, Mama Shelter), wine (Château Cos d’Estournel) and private clinics (Genolier, Nescens). This is no accident, it reflects the capabilities of the digital vault that we have developed for finance, that is, an encrypted and standardized data structure. The applications are already numerous, due to the industries for which compliance management is fundamental as it determines the reduction of risk. A platform like the one we designed allows you to register, verify and update basic data: identity, nationality, work permit, as well as ISO standards for suppliers, organic labels, … the spectrum is endless. All stakeholders receive information, and cheating is more difficult. Data validation becomes a child’s play.

The support we have received from the Michel Reybier Group is emblematic of the capabilities of our digital cabinet, and is part of a strategic partnership. It will facilitate the verification of compliance of all links, from patient management in relation to health regulations, to supply chains, including personnel.

What will this new money be used for?

It will enable us to diversify our product offerings and open up new markets, in terms of industries and geography, in other words to publish internationally, whether for governments, banks or organizations that want to secure their data, ensure its auditability and improve it. Risk Management.

Leave a Comment