The distributed ledger technology of blockchain serves as an ideal solution for secure and trustworthy transactions. This automated platform streamlines the operations and enhances compliance procedures. Blockchain-enabled KYC solutions enable financial institutions, businesses, and individuals to address the inefficiencies of a traditional KYC process.
The traditional KYC process is time-consuming and costly. Blockchain enabled KYC solution redefines the verification process, making is quick, transparent, and cost-efficient.
Blockchain-based KYC platform delivers trust and security within the platform and enables user verification processes in a smooth manner. Blockchain in KYC space accounts for many benefits which can be specified as immutable, transparent, private, and a shared ledger which automates the mechanism.
However, blockchain enabled KYC solution is still in a nascent stage and has various requirements for implementation.
Apart from these, there are also other barriers to blockchain-based KYC solutions that include governance concerns, a common central party to regulate the transactions, establishment of an overall data storage model. There are also other concerns regarding market wide acceptability and accessibility of infrastructure.
However, Blockchain KYC solution plays a pivotal role of in accelerating client on-boarding.
Blockchain enabled KYC solution can offer the following:
Progressing towards blockchain enabled solutions
There are two main approaches that are being considered for blockchain enabled KYC solution and that are mentioned as below:
This model is an intermediary step for blockchain-enabled solutions as it addresses many considerations such as centralization, digitization of records, and access to trusted data with the standardization policy. It facilitates higher flexibility in the model and provides a blueprint that would accelerate KYC adoption in the market.
Another model to get started with the blockchain KYC platform is by serving the banks with the pilot KYC program. This platform secures KYC documents and distributes them to multiple counterparties from a central interface after the authorization of an individual.
The integration of decentralized ledger technology with KYC automates the verification process and provides a safe and secure platform to enhance the experience of clients.
There is a huge need to harmonize the overall requirements with multiple financial institutions and their regulators, and efforts are being taken to solve the fundamental problems. Therefore if you are considering addressing the KYC problem and building trust in the market, associate with a blockchain enabled KYC solution development company.
Schedule a call with our experts and learn how you can go ahead with the implementation of blockchain enabled KYC solution.