Blockchain Platform For Client Identification Planned By Spanish Bank Group Niuronbr>
Spanish banking group Niuron is developing a blockchain platform that will verify the digital identity of clients.
Led by Cecabank, Niuron is a banking consortium that aims to promote blockchain technology in Spain’s financial sector. Consortium members include Abanca, Bankia, Caixabank, Caixa Ontinyent, Ibercaja, Kutxabank, Liberbank and Unicaja Banco. Based on assets and capitalization, Caixabank was Spain’s third largest bank in 2017. Ibercaja, Kutxabank and Abanca were also included in country’s top 10.
The blockchain platform is being developed by a subgroup of five members of the consortium – Abanca, Ibercaja, Kutxabank, Liberbank and Unicaja Banco – along with another entity, Caja Ingenieros. The goal is to resolve a common problem among all financial institutions, who must verify the identity of a customer when banking with them for the first time.
“When applying for products at a bank, the user will not have to provide any documentation if they have previously been a customer at one of the associated banks and give their consent to the sharing of their information quickly and securely,” the group said.
The group believes that blockchain platform will improve the speed of operations, reduce fraud, and prevent money laundering. The platform will also comply with the recently released EU General Data Protection Regulation (GDPR) and other security standards. After the completion of the blockchain platform, client data will be shared between different banks and financial institutions. The platform is expected to be completed by the end of 2018.
“The development of this platform seeks to increase the efficiency of new customer registration processes by sharing documents between companies that belong to the interbank consortium Niuron,” the goup said.
The GDPR, which was adopted by the EU on May 25 of this year, targets citizens’ personally identifiable information (PII), providing transparency around its use and giving people the right to restrict its use or request it be deleted all together. Any organization found to not be conforming to the new regulations could face heavy fines, equivalent to 4% of annual global turnover, or €20 million ($23M USD), whichever is greater.