Deloitte Develops Blockchain ID Check

Announcements, Blockchain, FinTech, Innovation, Regulation | May 11, 2017 By:

Deloitte has developed a new Know-Your Customer (KYC) as-a-service solution. Called ‘Kick Start’ (KYCStart), the service provides a blockchain proof-of-concept (PoC) in order to perform customer on-boarding.

KYCStart, developed by Deloitte’s Luxembourg branch, on-boards customers across various platforms and organizations by introducing extensible digital identities and the concept of regulated KYC service providers.

In this model, KYC service providers are regulated entities that are authorized to perform Know-Your-Customer (KYC) procedures for users who want to start relationships with banks, insurance companies, funds, asset servicers, among other entities.

The company said that authorizations provided by customers can be easily referred on a distributed ledger with executable distributed code contracts (EDCCs). When a customer would like to do business with a new entity, veracity checks against previous business dealings may be performed with EDCCs on a blockchain.

“With this proof of concept and related ecosystem, we demonstrate the benefits of using blockchain and smart contract to considerably reduce the costs of one of the most important burden of our institutional clients: KYC and customer on-boarding,” said Thibault Chollet, Deloitte director, technology and enterprise applications.

Deloitte will start providing ‘KYC as-a-Service’ to financial institutions as of mid-year. KYCstart will be one of the proposed counterparty on-boarding channels for the service.