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Shyft Network

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Shyft reduces the costs of compliance due diligence mandates [e.g. Know Your Customer (KYC); Business (KYB); Anti-Money Laundering (AML); Enhanced Due Diligence (EDD), etc.], while maximizing data security and protecting identity beyond the capabilities of traditional, non-blockchain-based compliance systems. In this manner, compliance becomes cheaper, faster, and more secure. Shyft also features a Creditability system, providing consumers with a reputational score based on compliance and historical transactional activity, which is especially useful for the unbanked. Shyft serves a variety of compliance use cases such as financial instrument exchange, crowdfunding, investment, payment, and subscriptions.

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Overview

Project industryPrivacy & Security
WhitepaperShyft Network White Paper Open

What is Shyft Network

Shyft is a distributed, multi-layer Blockchain-based network enabling users to securely obtain, store, inquire about, and work with regulatory-compliance-satisfying data.

Shyft reduces the costs of compliance due diligence mandates [e.g. Know Your Customer (KYC); Business (KYB); Anti-Money Laundering (AML); Enhanced Due Diligence (EDD), etc.], while maximizing data security and protecting identity beyond the capabilities of traditional, non-blockchain-based compliance systems. In this manner, compliance becomes cheaper, faster, and more secure.

Shyft also features a Creditability system, providing consumers with a reputational score based on compliance and historical transactional activity, which is especially useful for the unbanked.

Problem Statement

Recent developments in financial technology require industry participants such as financial institutions and regulatory bodies to quickly adapt to evolving technology or risk disruption and/or catastrophic failure (e.g. terrorism financing).

As a result, compliance obligations for financial institutions are increasing in number, complexity, and rigor Costs of satisfying these obligations continue to rise exponentially. Anything less than strict compliance can result in significant legal penalties and / or reputational damage.

For banks and large institutions, compliance represents a substantial drain on resources. For smaller institutions, it can stifle even basic operations. For example:

  • Inefficient compliance onboarding processes cost the average global bank $61 million USD annually.
  • Costs in the UK can range from $13 to $130 USD per individual compliance check.
  • The average UK bank is currently wasting $6.5 million USD each year due to inefficient manual compliance onboarding processes. This annual waste is expected to rise to $13 million USD over the next three years.
  • Financial firms with revenue of $10 billion USD or more spent an average of $150 million USD on KYC compliance in 2017, up from $142 million USD in 2016.
  • Financial institutions have to cope with maintaining cost-effective, risk-reducing compliance by implementing temporary solutions. The current approach is to simply raise headcount and deploy larger and larger amounts of capital to meet new mandates. This approach is crude, unscalable, and, over time, has demonstrated diminishing returns.

  • In 2013, JP Morgan spent an additional $1 billion on adding 4,000 employees to their compliance department.
  • Half of global financial institutions have added employees to keep up with Know Your Customer (KYC) compliance over the past year.
  • 75-85% of compliance costs are represented by Anti Money Laundering (AML) spending. Compliance professionals headcount deployed to handle KYC increased more than 3.5 times, from an average of 68 employees in 2016 to 307 in 2017.
  • Despite significant increase in resources, time required to perform compliance operations continues to lengthen—on average taking 26 days to on board a client in 2017, up from 24 days in 2016.
  • In 2016, the average time needed to screen a high-risk customer was 5.4 hours.
  • AML analysts spend 75% of their time on data collection, and 15% on data organization and entry.
  • Additionally, compliance processes can be repeated multiple times by subdivisions of an organization due to “data siloing”, effectively multiplying costs. Data silos are repositories of data which exist specifically for and remain under the exclusive control of particular divisions of an organization. One division’s repository is often inaccessible to other divisions and/or incompatible with other division’s systems, despite this data being useful to both divisions. These inefficiencies stem from a lack of flexibility and poor interoperability between the organization’s technological and bureaucratic systems.

    So far, costs described have concerned conducting compliance procedures and not the protection of the data procured. As can be seen from widely publicized incidents, data breaches are increasing in frequency and size.10 Organizations, especially large bureaucratic enterprises, trail behind in the IT security/cybercrime arms race.11 The recent Equifax breach, which compromised 143 million user records is an example of the potentially catastrophic risk inherent to centralized databases. In our opinion, no good (traditional) fix exists.

    Solution

    Blockchain-based distributed ledger technologies have the potential to streamline, cut costs, and reduce risks inherent in traditional compliance systems.

    Over the past seven years, projects ranging from digital governance to supply-chain shipping have been developed. Organizations are retrofitting existing product lines with blockchain technology. Proofs-of-concept are appearing in traditionally risk-averse institutional environments to more efficiently mirror vast swaths of data. Additionally, blockchain tokens are being used to incentivize users to act deterministically within ecosystems.

    For most - if not all - blockchains currently operating, collection of any user data, let alone collection of data that satisfies regulators is at odds with surrounding ecosystems.

    The lack of blockchains focussed on compliance data, coupled with what we saw earlier—financial institutions spending significant resources to tackle compliance— means there is a significant opportunity for a blockchain that automates compliance.

    We aim to build such a distributed compliance data system—the Shyft Network.

    Legal

    Blockchain Platform: SHYFT
    Office address: Shyft Network Inc — 3rd Floor, The Goddard Building. Haggatt Hall, St. Michael BB11059

    Token info

    Ticker: SHYFT

    Project team

    Joseph Weinberg
    Joseph Weinberg
    Chairman
    Joseph Weinberg linkedin
    Bruce Silcoff
    Bruce Silcoff
    CEO
    Bruce Silcoff linkedin
    Juan Aja Aguinaco
    Juan Aja Aguinaco
    COO
    Juan Aja Aguinaco linkedin
    Suzanne Ennis
    Suzanne Ennis
    SVP
    Suzanne Ennis linkedin
    Elena Yunusov
    Elena Yunusov
    SVP of Branding + Integrated Marketing
    Elena Yunusov linkedin
    Michelle Beyo
    Michelle Beyo
    COO
    Michelle Beyo linkedin
    Chris Forrester
    Chris Forrester
    CTO
    Chris Forrester linkedin
    Fredrico Nassire
    Fredrico Nassire
    CSO
    Fredrico Nassire linkedin
    Kristofer Coward
    Kristofer Coward
    Chief Scientist
    Kristofer Coward linkedin

    Advisors

    Anthony Di Iorio
    Anthony Di Iorio
    Anthony Di Iorio linkedin
    Loretta Joseph
    Loretta Joseph
    Loretta Joseph linkedin
    Jeremy Bornstein
    Jeremy Bornstein
    Jeremy Bornstein linkedin
    Darius Rugevicius
    Darius Rugevicius
    Darius Rugevicius linkedin
    Lord Anthony St John
    Lord Anthony St John
    Lord Anthony St John linkedin
    Daniel Kornitzer
    Daniel Kornitzer
    Daniel Kornitzer linkedin
    Ben Gorlick
    Ben Gorlick
    Ben Gorlick linkedin
    Lord Desai
    Lord Desai
    Lord Desai linkedin
    Rob Kirby
    Rob Kirby
    Meltem Demirors
    Meltem Demirors
    Meltem Demirors linkedin
    Marat Kichikov
    Marat Kichikov
    Marat Kichikov linkedin
    Peter Warrack
    Peter Warrack
    Peter Warrack linkedin
    Diego Gutiérrez Zaldívar
    Diego Gutiérrez Zaldívar
    Diego Gutiérrez Zaldívar linkedin
    Desmond McKenzie
    Desmond McKenzie
    Desmond McKenzie linkedin
    Jane Thomason
    Jane Thomason
    Jane Thomason linkedin
    Eyal Herzog
    Eyal Herzog
    Eyal Herzog linkedin

    Social media

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