Blockchain Identity Verification Platform For Banks To Be Launched In South Korea In July

Announcements, Blockchain, News | June 12, 2018 By:

The Korea Federation of Banks (KFB), a national banking group in South Korea, will be launching a blockchain identity verification platform in July.

Called BankSign, KFB said the platform will enable retail domestic banks to improve a decades-old verification system with digitization in both online and mobile banking. BankSign is based on Nexledger, a private blockchain solution developed by Samsung SDS.

Most banks in Korea rely on the so-called public certification system, a 20-year-old banking security system notorious for its complexity and inconvenience. KFB claims that BankSign will significantly simplify the process of user identification.

“With BankSign, banks will have options to choose from in verifying consumer identity, not just the public certification system,” said Park Chang-ok, a manager at the department of deposit services and payment systems at KFB.

KFB said that while BankSign will start off by providing the service in the banking sector, they will work with the government and other public organizations to expand its usage.

Earlier this year, the South Korean government reversed its “Digital Signature Act” policy wherein domestic institutions were mandated to use the public certification system, allowing the banking industry freedom to adopt blockchain technology.