Financial Decentralized ID for Banking Services Available with a Single ID

[Asia Economy Reporter Minyoung Kim] A financial decentralized ID that allows most banks to conduct transactions with a single ID will be introduced.

The Korea Financial Telecommunications & Clearings Institute (KFTC) announced on the 29th that it will take over the BankSign operations from the Korea Federation of Banks and operate the BankSign service starting January next year. Until now, the Korea Federation of Banks and KFTC have been negotiating the transfer of the BankSign management institution, considering the expertise in authentication services and efficiency in service management, and on the 28th, the KFTC board of directors approved the transfer of the BankSign management institution.

BankSign is a blockchain-based authentication service jointly launched in August 2018 by the Korea Federation of Banks and 16 banks. KFTC plans to actively promote cost reduction and the discovery of new services in BankSign operations based on its expertise as an authentication institution and service convergence.

KFTC and participating banks have agreed to rapidly convert BankSign’s blockchain infrastructure into a financial decentralized ID and jointly promote the financial decentralized ID.

The financial decentralized ID will be applied to customer verification procedures for both face-to-face and non-face-to-face transactions, minimizing the hassle of repetitive identity verification and enabling easy identity confirmation via mobile devices.

A KFTC official stated, "As demand for mobile-based self-sovereign identity verification services increases, the promotion of a financial decentralized ID for joint bank identity verification is expected to be a turning point that triggers changes in identity verification systems aligned with non-face-to-face and digital innovation."

This content was produced with the assistance of AI translation services.