South Korean Banks to Adopt Blockchain-Based User Verification System

Back in November 2017, the South Korea Federation of Banks (KFB) held a consortium meant to determine the best approach when it comes down to embracing blockchain technology. Shortly after, a partnership was formed with BankSign, to create a distributed ledger system that could be used for the domestic bank industry.

With this in mind, South Korean banks will soon introduce the blockchain-based system, whose purpose will be to ease and enhance the verification process for users on online platforms and on mobile banking applications.

According to the Federation, the platform is based on Nexledger, which is a private blockchain system created by the developers at Samsung SDS. To put things better into perspective, at this moment in time, most banks in the region rely on the public verification system. This means that customers need to head out to the local bank branch, and carry out all verification processes over there. With the new system, users will be able to verify their identity directly, either on online platforms, or via mobile banking. In other words, the user verification process will be sped up, and made simpler.

In a recent press statement, issued by a KFB spokesperson, it was mentioned that: “BankSign is the first project co-developed by the local banking sector utilizing blockchain technology (…) With BankSign, banks will have options to choose from in verifying consumer identity, not just the public certification system.”

The system will most likely roll out next month. If successful, the federation has talked about its plans to expand the platform to the government alongside other public organizations. In return, this will lead to time savings, better cost efficiency and reduced bureaucracy among the public sector.

However, if applied across other public industries, the system is bound to work best with a capable e-governance system. South Korea has already taken great steps in this direction.