A Review of Blockchain Approaches for KYC

Abstract

The traditional Know Your Customer (KYC) procedure used by banks is deemed unreliable and costly. Therefore, the adoption of emerging technologies is essential for banking firms' future prospects. One such technology that has gained widespread acceptance is Blockchain, which is known for its reliability and security across various fields. This study aims to investigate how the implementation of Blockchain technology can modify the existing banking business, particularly the KYC document verification process, by storing and monitoring of information. The current need for an optimized KYC system is paramount; one that is coupled with a secure and trustworthy technology like Blockchain that can withstand fraudulent activities while also overcoming scalability and privacy challenges. The article analyzes previous relevant works, which highlight how the implementation of Blockchain technology eliminates the need for intermediaries, thereby reducing the possibility of malicious activities and errors that may occur when there are multiple manual tasks involved.