The traditionally inefficient verification processes for customer identification may soon face a major overhaul, as Deloitte has integrated with KILT blockchain, a Polkadot (DOT) parachain, to issue reusable digital credentials. This is aimed at streamlining Know Your Customer (KYC) and Know Your Business (KYB) verification processes, ensuring that users maintain control over their data and share only what they desire.
But why does this matter? Paper-based certificates, identity verification requests that necessitate multiple data points, and the storage of personal information on multiple platforms pose significant challenges. These processes create extra work and also present heightened risks to consumers. The integration of blockchain-based digital credentials aims to alleviate these issues and provide customers with a more secure and efficient alternative.
Skeptics may wonder what the benefits of using a blockchain-based digital credential wallet really are. The credential wallet will be offered as a simple browser extension that users can set up without any prior knowledge of blockchain technology. With their credentials safely stored within the wallet, customers will have complete control over where and when their personal information is shared.
Deloitte maintains the ability to update or modify customer credentials if circumstances change, and securely revoke them using blockchain technology if necessary. Polkadot, as a crucial player within the blockchain ecosystem, quickly highlighted the significance of this move on Twitter, emphasizing the importance of effective KYC and KYB procedures in protecting financial institutions against fraud, corruption, money laundering, and terrorist financing.
Ingo Rübe, founder of KILT Protocol, stressed the importance of streamlined identity solutions built on KILT, which enable customers to utilize verifiable digital credentials across numerous services while still maintaining control over their personal information. As a Polkadot parachain, KILT can offer unparalleled scale and security required by enterprise partners.
Yet, Deloitte’s emphasis on blockchain and digital credential innovation is not mirrored in other Big Four accounting firms. A search for crypto-related job openings at Ernst & Young, KPMG, and PricewaterhouseCoopers revealed zero results compared to over 300 positions at Deloitte.
In conclusion, Deloitte’s move to adopt blockchain technology for issuing reusable digital credentials could revolutionize the way KYC and KYB verification processes are conducted. By leveraging KILT blockchain and Polkadot’s support, this integration has the potential to enhance security, control, and efficiency for customers. However, only time will tell if this innovative approach will be the new norm, or if the current verification methods will continue to prevail in the financial industry.