Deloitte Switzerland recently announced its partnership with Polkadot’s KILT protocol to enhance its Know-Your-Customer (KYC) solution. This development highlights the growing interest in the use of blockchain technology to improve compliance processes, particularly within the financial industry.
1/ @DeloitteCH – the world’s biggest accounting firm – is the latest major enterprise partner to come to the Polkadot ecosystem, choosing cutting-edge tech provided by the @Kiltprotocol parachain to enhance its identity protocols. pic.twitter.com/nkqr0i1s0I
— Polkadot (@Polkadot) May 4, 2023
Interestingly, the use of blockchain in KYC has the potential to significantly reduce costs, speed up processing times, and increase data security.
Polkadot’s KILT protocol is a blockchain-based identity verification platform that allows users to securely and privately share their personal data. The platform uses decentralized identifiers (DIDs) to create unique digital identities for each user, which can be used across different platforms and services.
How Deloitte Plans to Leverage Kilt
By leveraging blockchain technology, the KILT protocol ensures that personal data is stored securely and can be accessed only by authorized parties. Known for its interest in crypto-related innovations, Deloitte Switzerland’s decision to use the KILT protocol for its KYC solution shows how blockchain technology can help address some of the major challenges faced by compliance professionals.
Notably, KYC processes are often time-consuming and costly, with many financial institutions relying on manual checks and paperwork. In return, this leads to errors and delays, resulting in frustrated customers and lost revenue. By using the KILT protocol, Deloitte Switzerland can streamline its KYC processes and reduce the risk of errors or fraud.
Likewise, the platform allows for faster verification of customer identity, as well as secure sharing of personal data between different parties. This can help financial institutions save time and money while ensuring compliance with regulatory requirements. In addition to improving efficiency and security, the use of blockchain technology in KYC also has the potential to enhance privacy.
Expanding Blockchain Use in KYC
Ultimately, the adoption of blockchain technology in KYC represents a significant step forward for the financial industry. As more companies like Deloitte Switzerland look to improve their compliance processes, the use of blockchain-based solutions is likely to become increasingly common.
This will offer an encompassing benefit as the trend has the potential to revolutionize the way financial institutions operate, making them more efficient, secure, and customer-friendly.
Just last month, Bybit Exchange introduced compulsory KYC for all its users in a move towards full compliance. According to the Dubai-headquartered cryptocurrency exchange, KYC is a compulsory requirement for financial service providers that clients must fulfill. It is conducted to verify the identity, suitability, and risks involved, in order to minimize the risk to the respective account.
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