The way Korean Banks verify identities of their customers is about to improve drastically in the coming days, thanks to blockchain. BankSign, a blockchain based identity verification system developed by Korean banks will be operational from next month, which will allow the banks to validate identities of their customers without any lengthy and cumbersome process.
The new process will be completely digital and much faster than the existing system, thus leading to better online as well as mobile banking operations, according to a report published by local news outlet Korea JoongAng Daily. BankSign has been developed by Korea Federation of Banks (KFB), which is a group of country’s largest banks. A KFB spokesperson said about BankSign:
“BankSign is the first project co-developed by the local banking sector utilizing blockchain technology.”
BankSign platform has been built on top of Nexledger, an enterprise cloud computing platform developed by Samsung SDS, the IT subsidiary of Korean conglomerate. Samsung SDS has also been involved in other notable blockchain projects of country, including a project for logistics sector and another one for administration. As far as Nexledger is concerned, Samsung has tested it already with its credit card subsidiary Samsung Card so it’s a reliable solution for large scale deployments.
KFB had last year formed a consortium of its members to research over implementation of blockchain technology in banking sector. The research team had started developing the BankSign system immediately, and beta testing had begun this year in April.
KFB also said that BankSign will also find applications within other government and public organizations after a successful implementation in the banking sector. The launch is now just a few weeks away.
Until now Korean banks used to rely on an outdated and inefficient 20-years old public banking system. However, the government later reversed its ‘Digital Signature Act’ policy that mandated banks to use the public certification system, thus paving way for development and implementation of BankSign.