Author: Gan Jia Ci
A national group of South Korean commercial banks will be initiating a blockchain-based customer ID verification system in July.
According to the notice that was published by the Korea Federation of Banks (KFB) on Monday, the new platform will be used in both online and mobile banking. Dubbed as BankSign, the system based on distributed-ledger technology is scheduled to commence in July, following the testing phase that started in April after the government lifted its order that mandates banks to use the traditional system.
This new system aims to replace the 20-year-old public verification platform that has continuously been criticised for its inefficiency and complicatedness.
Manager at the department of deposit services and payment systems in KFB Park Chang Ok declared that the new blockchain-based system offers a myriad of options for ID verification, “not just the public certification system”.
The KFB represents South Korean commercial banks including renowned institutions like Shinhan and Woori banks that have also explored blockchain-powered cross-border remittances for business customers.
The development of BankSign commenced immediately after a consortium was launched by the KFB to explore further blockchain application opportunities in the local banking sector in November last year. Banksign is a platform based on a private enterprise transaction management tool established by Samsung SDS.