Blockchain-Based KYC Model for Credit Allocation in Banking
Yükleniyor...
Tarih
2024
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Institute of Electrical and Electronics Engineers Inc
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
The implementation of the Know Your Customer (KYC) strategy by banks within the financial sector enhances the operational efficiency of such establishments. The data gathered from the client during the KYC procedure may be applied to deter possible fraudulent activities, money laundering, and other criminal undertakings. The majority of financial institutions implement their own KYC procedures. Furthermore, a centralized system permits collaboration and operation execution by multiple financial institutions. Aside from these two scenarios, KYC processes can also be executed via a blockchain-based system. The blockchain's decentralized network would be highly transparent, facilitating the validation and verification of customer data in real-time for all relevant stakeholders. In addition, the immutability and cryptography of the blockchain ensure that client information is secure and immutable, thereby eradicating the risk of data breaches. Blockchain-based KYC can further improve the client experience by eliminating the requirement for redundant paperwork and document submissions. After banks grant consumers loans, a blockchain-based KYC system is proposed in this study to collect limit, risk, and collateral information from them. The approach built upon Ethereum grants financial institutions the ability to read and write financial data on the blockchain network. This KYC method establishes a transparent, dynamic, and expeditious framework among financial institutions. In addition, solutions are discussed for the Sybil attack, one of the most severe problems in such networks.
Açıklama
Anahtar Kelimeler
Know your customer, Blockchain, Ethereum, Smart contract, Distributed ledger
Kaynak
IEEE Access
WoS Q Değeri
N/A
Scopus Q Değeri
N/A
Cilt
12
