A group representing South Korea’s commercial banks will introduce a customer ID verification that is being anchored on blockchain technology beginning in July.
The Korea Federation of Banks (KFB) would formally launch “BankSign”, a blockchain-based identity verification platform that allows retail domestic banks to bolster an ancient verification system with digitization in both online and mobile banking.
This is according to a report on the Korea JoongAng Daily.
Before this year, Korean banks needed to use a two decade old public banking security system that is inefficient and outdated. However, the government took a 180-degree turn on its ‘Digital Signature Act’ policy wherein domestic institutions were forced to use the public certification system.
A KFB spokesperson said:
“BankSign is the first project co-developed by the local banking sector utilizing blockchain technology.”
The blockchain platform is notably established on top of Nexledger, a private enterprise cloud computing platform worked on by Samsung SDS – the IT subsidiary of South Korea’s biggest conglomerate, Samsung.
The Samsung SDS was introduced in April 2017 beside the launch of Nexsign, a biometric authentication solution also set up by Samsung that allows consumers to access a number of services using a single ID authentication. While this is not associated with KFB’s BankSign, Samsung has already tested its Nexledger blockchain with Samsung Card, the conglomerate’s credit card company, as early as October 2016.
It has now been disclosed that the KFB set up a consortium of its members to look into and implement blockchain technology in the domestic banking sector in November 2017. Development of BankSign took off, the KFB claimed, before select member banks started beta testing the system in April this year.
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