How Banking on Blockchain is better for Know Your Customer?

In a recently conducted survey mapping the latest fintech trends, it was revealed that nearly 88% of professionals working in the Fintech industry believed that blockchain will be at the back of FinTech products by the year 2020. It is an astounding number predicting a technical revolution, given the skepticism and suspicion attached with blockchain only a few years back. Although there are many services and solutions offered by Fintech that can be integrated into banking operations. But surely the most useful is KYC for banks offered by identity verification services.  Advantages of KYC get a real shot in the arm with blockchain as all the information collected for ID verification and identity verification can be stored in a centralized resource that can not be accessed without proper authorization.

Blockchain for KYC Service Provider

Various crypto platforms are already using KYC process flow with coin base ID verification being the most notable form. But with intrinsic features of blockchain ensuring that no data breach of collected personal information ever occurs and any attempt of unauthorized access is duly reported, blockchain seems to answer all the privacy and data protection grievances commonly reported in KYC for Banks solutions. Introduction of blockchain based know your customer solutions will also allow a banking organization to keep track of transactions performed by a customer and ensure that no user with fake credentials ever tries to take over the account, considered the most common form of financial fraud performed by a scammer in the absence of an innovative KYC service provider.

Advantages of KYC with Blockchain

KYC requirements for banks are stricter than ever owing to the greater focus on customer rights and scrutiny by regulators on the digital practices. Frequent data breaches and poor data security bordering corporate negligence created a toxic compliance environment for banks that was resulting in multi-million fines being slapped on large banks despite maintaining compliance offices and spending millions annually on ensuring data protection for KYC verification.

Blockchain provides the much need cushion to ID verification and identity verification when it comes to regulatory compliance and threat of data hacking. KYC requirements for Banks becomes easier to tackle when the KYC banking solutions are backed by blockchain. These banking KYC solutions will be able to not only collect verified information from incoming users but store it at a discreet centralized location away from the eyes of data hacking vultures.