Korean Banks to Launch Blockchain-based Customer ID Verification

August 8, 2018

A group of national banking in South Korea is to use Samsung SDS, a blockchain-based customer ID verification system from July 2018, according to a notice revealed by the Korea Federation of Banks (KFB).

The brand-new system, dubbed BankSign – is going to be launched in July 2018 after completing an evaluating phase from April of this year.

BankSign was formed on top of Nexledger, a private blockchain platform developed by Samsung’s enterprise solution division. This system will help domestic banks advanced the current ID verification system that has been used for decades in South Korea, with digitization in both online and mobile banking, said the KFB.

The KFB was founded in 1984 representing commercial banks in South Korea, with notable giant banks including Shinhan and Woori banks – institutions that are particularly exploring to adopt blockchain-based cross-border remittances for business customers.

The new blockchain ID verification system marks one of the first attempts of commercial banks in South Korea to make blockchain applications popular for general consumers.

According to Korea JoongAng Daily, the KFB has built a banking blockchain consortium of its members in November 2017 to research and adopt an alternative authentication system in national banking sector.

Additionally, the beta testing of BankSign was activated in April after the South Korean government had lifted its mandate that banks must use the existing traditional system, allowing the banking industry freedom to adopt more streamlined services, BankSign added.

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