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Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | KYC Optimization Using Distributed Ledger Technology |
| Organization Unit | |
| Authors |
|
| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | Business & Information Systems Engineering |
| Publisher | Springer |
| Geographical Reach | international |
| ISSN | 1867-0202 |
| Volume | 59 |
| Number | 6 |
| Page Range | 411 - 423 |
| Date | 2017 |
| Abstract Text | The know-your-customer (KYC) due diligence process is outdated and generates costs of up to USD 500 million per year per bank. The authors propose a new system, based on distributed ledger technology (DLT), that reduces the costs of the core KYC verification process for financial institutions and improves the customer experience. In the proposed system, the core KYC verification process is only conducted once for each customer, regardless of the number of financial institutions with which that customer intends to work. Thanks to DLT, the result of the core KYC verification can be securely shared by customers with all the financial institutions that they intend to work with. This system allows for efficiency gains, cost reduction, improved customer experience, and increased transparency throughout the process of onboarding a customer. |
| Zusammenfassung | The know-your-customer (KYC) due diligenceprocess is outdated and generates costs of up to USD 500million per year per bank. The authors propose a newsystem, based on distributed ledger technology (DLT), thatreduces the costs of the core KYC verification process forfinancial institutions and improves the customer experi-ence. In the proposed system, the core KYC verificationprocess is only conducted once for each customer,regardless of the number of financial institutions withwhich that customer intends to work. Thanks to DLT, theresult of the core KYC verification can be securely sharedby customers with all the financial institutions that theyintend to work with. This system allows for efficiency gains, cost reduction, improved customer experience, and increased transparency throughout the process ofonboarding a customer. |
| Free access at | Official URL |
| Official URL | https://link.springer.com/article/10.1007%2Fs12599-017-0504-2 |
| Digital Object Identifier | 10.1007/s12599-017-0504-2 |
| Other Identification Number | merlin-id:15439 |
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