Blockchain-Based Implementation on Electronic Know Your Customer (e-KYC)

Abstract

The electronic Know Your Customer (e-KYC) is basically a system for all the banking enterprises or for the identity providers to establish and provide a customer identity such as data verification process between agreeing parties. Nowadays, most of the banks are implementing e-KYC on cloud due to its efficient resource consumption and high degree of accessibility and availability of cloud computing. KYC is also a procedure by which banks gather information about their customers' identities and addresses. It is a regulated practice of completing due diligence on clients to verify their identity. This procedure aids in ensuring that clients are genuine and the bank's services are not being abused. The banks are in charge of completing the KYC process. In this paper, we have discussed the demerits of the process for establishing accounts and KYC may be a time-consuming, manual process that is duplicated across institutions. Financial institutions would be able to use blockchain to share KYC information, to improve compliance outcomes, efficiency, and customer service, and to avoid redundancy by gaining experience.