Hassle - Free and Secure e-KYC System Using Distributed Ledger Technology

Abstract

The blockchain technology is a prominent, reliable and secure technology which is getting into almost every industry. The fundamental essence of blockchain technology offers features like transparency, decentralization, immutability, resilience, disintermediation, collaboration, security and trust. In this paper, we have focused on how the present banking industry, especially the KYC document verification process, can be impacted after using blockchain to store and track the records. The current day banking KYC processes are highly reliable on paper which is an outworn process. It is utmost essential today to have an upgraded KYC system, embedded with a reliable and trustable technology like blockchain, that could withstand frauds, and resolve the scalability and security issues. In the proposed system, the use of blockchain in KYC process restricts the presence of middlemen. This results in a reduction of fraudulent activities and errors that may occur when there are a lot of manual activities involved. Furthermore, the document verification process is only conducted only one time, no matter what is the number of financial institutions with which the customer is working with. This system provides more efficiency, reduction in costs, enhanced customer rendezvous and end-to-end transparency during the process of integrating the customer documents into the bank database.