Samsung SDS has completed the development of a blockchain-based system that will help financial institutions in Korea facilitate ID verification processes, the IT services firm said in a press release on Monday.
A collaborative effort of the IT arm of Korean giant Samsung Electronics and the Korea Federation of Banks (KFB), the BankSign tool is designed to streamline transactions in mobile and online banking. To achieve this, the platform will let users make money transfers on the apps of different banks, while being certified on only one of them.
The certificate will verify customers’ identities through password, fingerprints and patterns, thus limiting fraudulent activities. It will be valid for up to three years and will therefore spare users the efforts to get verification from each bank app every year, as the existing system requires. In this sense, BankSign does not need to verify identities after one year, as the distributed ledger technology (DLT) allows banks to synchronize authentication information in real time and strengthens security by encrypting communication segments, Samsung SDS explained.
The DLT that BankSign is based on is dubbed Nexledger, a private solution developed by the IT firm in 2017.
Samsung SDS said it is satisfied that its blockchain applications, which have found a place in different industries, like finance, manufacturing, and logistics, are now entering the banking sector.
Meanwhile, BankSign is seen to also extend beyond the financial sphere, KFB spokesperson Park Chang-ok told media outlet Korea JoongAng Daily in June when the new blockchain tool was first revealed.
“While BankSign will start off by providing the service in the banking sector, we will work with the government and other public organizations to expand its usage,” according to the spokesperson.