Challenges faced by the KYC industry
Centralized databases
Data assets are stored in siloed, centralized repositories. KYC providers that do not have a robust permission-based system often risk giving it to the wrong parties.
Security flaws
Thales reports that around 50% of all U.S. businesses deliver security-focused products. The lack of a proper ID management solution for those leads to data flaws and fake personalities.
Slow reporting
In banking, it typically takes operators up to weeks to perform a KYC check and report on results, which severely affects regulatory maintenance costs incurred by financial institutions.
Insufficient transaction monitoring
Conventional systems lack tools that promptly detect, report, and resolve data compromise issues arising from inadequate tracking and audit of user identities.
Non-standardization
Collected among various organizations, KYC data passes through different APIs, protocols, and systems; due to such an inconsistent architecture, it becomes an appealing target for hackers.
Risk centralization
Traditionally, specific companies or service providers carry out KYC procedures, meaning that the conducting structure performs testing and decides how to use user data single-handed.
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Contact usBlockchain solutions for KYC from Aetsoft
Data distribution
Store KYC data on a decentralized network, sharing it with third parties only upon verifying their identity or upon receiving valid permission from an authoritative party.
Fast reporting
Establish a shared blockchain ledger for financial institutions, where all parties could validate activities and report flaws and errors immediately upon reaching consensus.
Consistent user authentication
Verify user identity instantly and prevent fraud via blockchain’s cryptography and fraud detection criteria defined in code-dependent, self-executing smart contracts.
Transparent transaction histories
Get end-to-end monitoring of everything happening in your system, from account opening to daily transactions. Spot any deviations through a blockchain-enabled ID system!
Automation and standardization
Use blockchain-enabled smart contracts, with rules for data exchange across systems immutably written in, to establish a single and persistent standard of data transmission.
Decentralized ecosystem
Provide open access to data for all parties in your network to let them handle operations on mutually-agreed and equal terms.
Blockchain applications in KYC
Use case 1. Single identity validation
Currently
In traditional KYC systems, each organization or government institution checks users independently, every time from scratch, which takes time and money and poses security risks.
With blockchain
Provide a single, cryptographically secure and immutable, database for all involved entities; a user can pass KYC only once, and then use the platform to confirm their identity.
Use case 2. Consistent infrastructure
Currently
Collected among various organizations, KYC data passes through different APIs, protocols, and systems; due to such an inconsistent architecture, it becomes an appealing target for hackers.
With blockchain
Use blockchain-enabled smart contracts, with rules for data exchange across systems immutably written in, to establish a single and persistent standard of data transmission.
Use case 3. Fast KYC checks
Currently
In banking, it typically takes operators up to weeks to perform a KYC check and report on results, which severely affects regulatory maintenance costs incurred by financial institutions.
With blockchain
Establish a shared blockchain ledger for financial institutions, where all parties could validate activities and report flaws and errors immediately upon reaching consensus.
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