Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
This work aims to improve KYC efficiency for banks and customers, but it appears incremental as it builds on existing blockchain and SSI concepts without claiming major breakthroughs.
The paper tackles the problem of costly and inefficient KYC processes in banking by proposing a framework using blockchain-based self-sovereign identity, resulting in a design that addresses data protection and privacy concerns.
Know your customer (KYC) processes place a great burden on banks, because they are costly, inefficient, and inconvenient for customers. While blockchain technology is often mentioned as a potential solution, it is not clear how to use the technology's advantages without violating data protection regulations and customer privacy. We demonstrate how blockchain-based self-sovereign identity (SSI) can solve the challenges of KYC. We follow a rigorous design science research approach to create a framework that utilizes SSI in the KYC process, deriving nascent design principles that theorize on blockchain's role for SSI.