South Korean Banks To Use Blockchain For Customer Verification
The Korean Federation of Banks (KFB) declared that in the near future, it will release a blockchain-based identity system to be used by retail domestic banks in South Korea. According to a report by CoinDesk, the system, christened BankSign, will be launched in July following the conclusion of the examination period which commenced in April 2018.
The new system will provide local banks with the alternative of replacing the current ID verification system which has been used in South Korea for several years. Before this new development, Korean banks were under obligation to make use of the old public banking security system was not only obsolete, but also incompetent.
Following the reversal of the ‘Digital Signature Act’ by the Korean government, institutions are now mandated to use nascent technologies which are efficient and up to date. The BankSign system is built on top of Nexledger, a private enterprise cloud computing platform which was created by Samsung SDS.
In November 2017, KFB liaised with South Korean local banks to establish a blockchain consortium aimed at coming up with an alternative authentication system. According to KFB, the new blockchain ecosystem will be made available for both online and mobile banks, and will be instrumental in assisting commercial banks to interact with the mass consumer.
Launched together with Nexsign in April 2017, Samsung SDS developed a biometric authentication solution that enables clients to access several services by making use of a one ID authentication. The system is another invention introduced by Nexledger in Korea’s fiscal sector.
KFB asserted that BankSign will be used in other government applications as well as public organizations to ensure that the new innovation within the banking sector takes off seamlessly. An official from KFB announced that the new system will start off by offering services not only within the banking sector, but also among other public institutions in order to increase its usage.
It is also worth noting that representing the interests of commercial banks in South Korea, KFB is in the process of considering the possibility of using blockchain to improve international money transfers.