South Korean Banking System to Roll Out a Blockchain-Based ID Verification System for Banks

South Korean Banking System to Roll Out a Blockchain-Based ID Verification System for Banks

A national South Korean banking group is going to launch a blockchain-based ID verification system for commercial banks in the country in just a few weeks.

The KFB (Korea Federation of Banks) revealed a notice on Monday, according to which, BankSign, the new ID verification system is scheduled to be launched next month following a testing phase that began sometime in April this year.

BankSign is built on top of Nexledger, a privately developed blockchain platform by Samsung’s enterprise solution division. According to KFB, the platform will offer the domestic commercial banks an option to replace the old verification system that they’ve been using for decades now.

The Korea Federation of Banks represents the commercial banks in South Korea. Founded in 1984, the federation has some notable members like Shinhan and Woori Banks, both of which have been exploring the nascent technology for cross-border remittances for their business customers.

This new blockchain-based ID service marks one of the first efforts by South Korean commercial banks to make blockchain applications available to the general public. The service will be available for both online and mobile banking, the KFB added.

The exploration of an alternative ID verification system began in November 2017 when the federation formed a consortium with local banks.

The beta system of this authentication system started in April when the national government lifted its mandate that domestic banks must use the traditional system, allowing the South Korean banking industry to explore and experiment with more streamlined services.

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