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Blockchain Based KYC – For Tamperproof Data Handling

Updated: Jun 21


Blockchain Based KYC

Prolonged KYC Is A Thing Of The Past

Financial services have been looking for solutions to solve the ‘identity’ problem for a long time. In case of such service providers, a thorough KYC process is non-negotiable. In light of the increasing number of sophisticated financial crimes each year, the pressure on KYC compliance is only rising. According to report by Thomson Reuters, the average time to complete a KYC process in 2017 was 32 days! It also revealed that around 85% of the customers ended up with a negative experience due to prolonged KYC, whereas 12% switched banks.


Challenges with Traditional KYC :

For most institutions, KYC is a manual process where dedicated employees verify the background (documents) of prospective customers using third party sites, manual calls, emails, etc. There are two major drawbacks to this process –

  • The handling/mishandling of private customer data by multiple entities

  • Establishing the authentication of other identification sources

  • Huge amounts of paperwork leading to delays

  • Inefficiencies in collating data between parallel systems

It is due to these vulnerabilities, uncertainties and volatilities; financial institutions are turning to Blockchain enabled KYC.


How does Blockchain based KYC work?

Being a decentralized ledger, blockchain allows the accumulation of data from multiple authoritative service providers and stores it into a single, immutable, cryptographically secured and validated database. It creates a secure, public, digital ledger that can almost instantaneously verify the identity of an individual recorded in the database.

We have developed a blockchain based KYC platform that automates a lot of the manual processes involved in KYC and also offers a decentralised universal platform that is resistant to tampering of any kind. It eliminates the chances of fraud and offers a much greater control over data.


Blockchain-based-KYC-Workflow

How does Blockchain help with KYC?

Blockchain-based KYC solutions offer a competitive advantage in terms of cost, speed and efficiency to any industry that relies on identity verification.

  • Automation and Standardization of processes: Right from bill payments to hotel ticket bookings, data collection is an everyday affair for many companies. With the recent KYC policy standardizations, it is now possible to create smart contracts that can self-execute operational processes. With the advancement in technology, we are also looking at implementation of multilingual solutions, with the help of translation tools and smart contracts.

  • Better communication and transparency: Our solution enables end-to-end monitoring of all daily activities, from account openings to day-to-day withdrawals/deposits. With the implementation of smart contracts, the solution can detect and arrest frauds at the base level and alert the bank about the same.

  • Better communication and transparency: Our solution enables end-to-end monitoring of all daily activities, from account openings to day-to-day withdrawals/deposits. With the implementation of smart contracts, the solution can detect and arrest frauds at the base level and alert the bank about the same.

To learn more about the solution, write to us or click here.

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