Samsung aims to simplify and centralize banking authentication using blockchain

Posted: 27 August 2018 3:40 pm

Samsung SDS, the Information Technology (IT) subsidiary of South Korean company Samsung, announced the development of a blockchain-based certification system that allows customers to transact with different banks.

Yonhap News reports that Samsung SDS created the shared banking platform, known as BankSign, together with the Korea Federation of Banks in order to make it easier for people to perform financial transactions.

Users can make transactions through multiple banks’ mobile platforms via a singular certification process. Verification can be made using either fingerprint, password or pattern. The implementation of blockchain technology means there is an added level of security to combat issues such as forgery and falsification.

Banks systems and data-sharing networks are linked to provide enhanced safeguarding, according to Samsung SDS. The company added that user certification can remain valid for up to three years.

“BankSign is the first application of the much-anticipated blockchain technology on banking services,” Samsung SDS said. “The company will continue to expand its digital transformation business, which will bolster competitiveness of banks and financial institutions.”

Samsung SDS launched its first blockchain-for-business platform, Nexledger, in April of last year.

One of the least-sustainable trends in existing financial services is hidden away in the background. Compliance costs, which refers to the cost of handling legal obligations such as Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations, are a growing stone in the shoes of financial services. The blockchain certainly isn’t a magic bullet for everything, but it can get pretty close when properly used for identity management.

Singapore Exchange (SGX) and the country’s central bank, the Monetary Authority of Singapore (MAS), will partner to develop a blockchain-based system that readily settles digital currency and securities transactions.

US-based digital exchange Bittrex has joined forces with Rialto Trading to optimistically set up a new digital securities trading platform, merging industry expertise and financial services capabilities.

The latest survey of industry leaders suggests that blockchain technology is at a turning point, shifting from exploratory exercises to practical application among global businesses. However, there are issues to iron out.

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