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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title KYC Optimization Using Distributed Ledger Technology
Organization Unit
Authors
  • José Parra Moyano
  • Omri Ross
Item Subtype Original Work
Refereed Yes
Status Published electronically before print/final form (Epub ahead of print)
Language
  • English
Journal Title Business & Information Systems Engineering
Publisher Springer
Geographical Reach international
ISSN 1867-0202
Page Range Epub ahead of print
Date 2017
Abstract Text The know-your-customer (KYC) due diligenceprocess is outdated and generates costs of up to USD 500million per year per bank.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.
Zusammenfassung The know-your-customer (KYC) due diligenceprocess is outdated and generates costs of up to USD 500million per year per bank.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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