Banking News

Korean banks planning blockchain identity

korean money

The Korean Federation of Banks (KFB) announced a new blockchain based ID verification system, BankSign, which will launch in July.

The system aims to improve user verification in mobile and online banking.

The current 20-year-old public certification system makes it cumbersome and complicated for users to verify their identity. As a result, earlier in the year the Korean government publicized a review of the process. So BankSign is a first step to replacing it.

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

The KFB has moved quickly. The consortium formed in November 2017, started development in the same month and subsequently performed a beta test in April.

According to the KFB, this represents the first blockchain project to be co-co-developed by the Korean banking sector.

Following from its auspicious start and according to Korea Joongang Daily, the KFB wishes for further expansion: “While BankSign will start off by providing the service in the banking sector, we will work with the government and other public organizations to expand its usage,” said the KFB spokesperson.

Technology

BankSign uses the Nexledger permissioned blockchain from Samsung SDS. The Korean tech company has ambitious plans for its blockchain technology beyond identity. The company says it is ready for production applications in identity, payments, and digital stamping. Digital stamping refers to certifying electronic documents without the need for a trusted third party.