KPMG to support growth plans of blockchain start-up ETCH

Big Four consulting firm KPMG will support ETCH, a blockchain-based payroll system, as the solution-based firm bids to build its operations in a compliant way. The London-based start-up is looking to employ blockchain to help businesses save time and money via the creation of a combined payroll platform.

Payrolls, wire transfers and bank payments have created an ecosystem for both businesses and employees, which is proving increasingly difficult to navigate. In addition to wasting time, companies sacrifice significant fiscal efficiency on the process – with the settlement of transactions through traditional financial systems costing upwards of $100 per transaction in some cases of wire transfers. Now, British start-up Etch is seeking to utilise blockchain technology in order to change that.

The applications of blockchain have diversified significantly over recent times, with what was once merely thought of as a FinTech now being engaged to tackle supply chain and logistical issues and even food fraud. In this case, through ETCH and its automated payroll system, employees will be able to be paid and incentivised in real-time, while companies stand to make significant efficiency savings by circumventing the large transaction fees of major financial institutions, or issue further manual verification and approval throughout transactions. It will even offer a mobile application, further boosting the functionality of the platform.

Now, as ETCH looks to expand following its September launch, it will see its growth plans supported by Big Four consultancy KPMG. The global firm, which generates more than $20 billion in annual revenues, will help ETCH formalise its work with distributed ledgers and provide full life-cycle support. KPMG’s consulting support will combine several management and risk tasks while also advising Etch on the best business practice for the current ICO phase, “encompassing valuations, tax implications, risk framework, governance and controls.”

The move comes at a time when some of the biggest names in the consulting industry are scrambling to make the most of the new financial services technology. Big Four rivals PwC launched a blockchain team in its Belfast office recently, while Deloitte announced plans for a blockchain bank in partnership with ConsenSys Enterprises last summer. KPMG are no strangers to the arena themselves, meanwhile, having partnered with Microsoft in 2016 to create a suite of blockchain service offerings.

Chris Mills, head of blockchain for KPMG UK, said of the firm’s support for this latest project, “Etch is a superb initiative because it provides guaranteed payments in real-time for all work completed, something that no other platform is currently known to achieve. There are clear and immediate benefits, particularly for low and average income workers, who make up the clear majority of the population. Etch stands out as it leverages blockchain, mobile and digital technologies in a customer-friendly way.  It uses smart technology to power intuitive apps that deliver exactly what’s needed in a simple and neat format for those most in need of cash flow.”

Euros Evans, London-based technology entrepreneur and CEO of Etch, meanwhile added, “Billions of the world’s population live paycheque to paycheque, a situation that can lead to mounting debt, stress and poor health. The Etch solution enables employers to pay their employees in real time.  If, for example, they don’t have any money at the beginning of the day, their morning’s work will mean they have enough money for lunch and other purchases.”