The document discusses how blockchain technology can revolutionize identity management in financial services by providing self-sovereign identity and reducing the operational burden on banks. It highlights the inefficiencies of current KYC processes and suggests that a blockchain-based KYC utility model can enhance client interaction while minimizing regulatory risks and fraud. Signzy is mentioned as a company that helps financial institutions transition to more efficient digital systems through AI and blockchain.

1. KYC: Blockchain will change
how businesses think about
identity

2. Introduction
Identity in the developed financial services world is defined
by government-issued identity (drivers’ license, passport,
social security card, etc.) and the controlled acceptance of
those individuals / entities (by CRM, KYC utilities, etc.) at an
organizational level.

3. How banks think about identity today
Managing identities is a nightmare for banks that are
increasingly conscious of their operational burden on
margins and the risk of falling afoul of regulators. KYC is non-
competitive, manual document intensive and highly
duplicative particularly for multi-national corporations with
multiple banking relations per country.

4. The idea of self-sovereign identity
Today, we keep passports, birth certificates, and utility bills
at home under our own control, maybe in an “important
drawer,” and we share them when needed. When we want to
prove our address, we must over-share many other identity
details in that one form of identity evidence.

5. What’s the answer? Blockchain.
Blockchain is a type of distributed ledger where all data is
replicated for all participants in real-time. To use
Blockchain as a foundational architecture for identity
applications would allow governments or banks to provide
people with digitally-stored identity via an app.

6. How that impacts financial services – KYC
Banks and financial institutions are required, by law, to
clearly identify and create a risk profile for each customer.
The KYC utilities Blockchain model of the future will focus
on multiplying cost savings across the industry, which will
in turn present the leading KYC utility with self-
perpetuating market leadership.

7. Distributed client data collection
With a blockchain-based KYC utility model, banks will regain
ownership of the end-to-end client interaction. Instead of the
KYC utilities asking new corporates to consent to sharing
their client data, member banks would ask their existing
corporate clients for consent to share onto the utility.

8. Centralisation of risk and controls
Banks and regulators can achieve tighter control and
reduced regulatory risk by limiting human input and
driving standardisation across the industry. Direct feeds
from authoritative sources into the corporate profiles will
better reduce fraud risk and the scope for human errors,
compared to physical documents or customer-entered data
fields.

9. About Signzy
Signzy helps financial institutions transform current semi-
manual processes into real-time digital systems, using
Artificial Intelligence and Blockchain. This ensures that the
new processes are user-friendly, yet secure and compliant.
Bangalore office
BPL building, 11th KM, Arakere
Bannerghatta Rd, Bengaluru,
Karnataka – 560076
Mumbai office
“Rise” 1902, 19th Floor,
Peninsula Business Park, Tower
B, Lower Parel, Mumbai –
400013
reachout@signzy.com
https://signzy.com/

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