Can Blockchain Be Socially Responsible?

We’ve learnt of the many ways that using blockchain technology can have a positive outcome when advancing compliance functions within the gambling and gaming world. This powerful tool not only helps operators avoid fines and different types of risks but can potentially assist with the ethical framework of organisations.

Gambling isn’t universally accepted by all institutions for one reason: the burden of social responsibility. To begin with, the word “gambling” already possesses negative connotations of addiction and poor financial management. This doesn’t have to be the case if you have powerful resources in place to monitor the behaviours of consumers.

In the sphere of protecting vulnerable customers, the Financial Conduct Authority’s Treating Customers Fairly (FCA TCF) rules distinguishes six expectations for organisations to adhere to:

  1. Understanding customers’ needs;
  2. Equipping workforces to recognise and respond to harmful behaviours;
  3. Creating products and service designs that are fit for purpose;
  4. Having empathetic customer support;
  5. Proactive marketing communications that inform customers of harmful behaviours;
  6. Monitoring and evaluating the outcomes of harmful behavioural patterns.

The most valuable resource to achieve these points effectively is data. Blockchain can collect data instantly and accurately. This is the main pain point for operators when challenged by regulators to prove that there are systems in place to protect and cater to the potential vulnerabilities their products can have on a customer. With this data written directly on the chain, all it takes for regulators to receive this data is to be given the permissions to do so. This is in comparison to having compliance records being made available upon inspection where data can easily be missed and/or lost.

Additionally, blockchain enables organisations to seamlessly meet Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements through data, providing a solution to these majorly important functions. In being able to store such detailed analysis of behaviours in spending, blockchain technology allows operators to prevent customers from gambling unsustainably and also helps to assess their customers’ affordability. It shifts organisations away from being reactive to being proactive, which is what regulators assess their inspections on.

Despite the obvious benefits this evolution of technology can have on the gambling and gaming industry, blockchain is still misunderstood by organisations. The hope for the future of the industry is that blockchain can create and maintain safe environments, not only for the benefit and duty of care to customers but also for the reputational integrity of operators and the safety of their workforces.

Blockchain doesn’t make social responsibility an option; blockchain makes social responsibility a necessity.