The gap between banks and cryptocurrencies might not have closed just yet, but blockchain technology has definitely found its place amongst traditional financial institutions. The latest reports come from South Korea, where Smartphone users can now remotely open bank accounts by completing their Know Your Customer (KYC) requirements on an app powered by ICON’s blockchain.
ICONLOOP, the technological arm of the popular blockchain company ICON, has recently partnered with South Korean banking giant Shinhan Bank, to deploy KYC compliance certificates via its mobile application dubbed Zzeung.
Shinhan Bank is South Korea’s second-largest bank with over $375 billion worth of assets under its management. ICONLOOP’s application will leverage its blockchain-based decentralized identity (DID) technology to allow the bank’s customers to open accounts.
These compliance certificates will allow users to bypass the unnecessary hassles faced by customers to request service at Shinhan Bank. Upon completion of the verification process via the Zzeung app, the bank will cross-check the information and issue the compliance certificate.
Once the certificate is issued, it will be applied for various non-face-to-face identity verifications like “mobile OTP issuance, password change, and other customer verification needs.”All the sensitive user information will also be secure and tamperproof, courtesy of blockchain tech.
The information saved in the Zzeung application can also be applied to other organizations that support this with just a biometric verification without having to repeat the entire process.
The announcement adds that Zzeung is the only mobile app approved by the Financial Services Commission in South Korea. According to ICONLOOP CEO Jong-hyup Kim:
“This issuance of KYC compliance certification with Shinhan Bank is of great significance because it is the first commercialization of DID services used in the financial sector in Korea.”
Adding, “In the future, we will expand the Zzeung to all industries that require identity verification beyond the financial sector so that more users can experience the convenience of DID technology.”
The announcement also added that Shinhan Financial Group affiliates like Shinhan Card, Shinhan Financial Investments, Shinhan Life, Orange Life, and Jeju Bank, are all considering using Zzeung service by 2021.
Besides this, the Zzeung app is also being used for contact tracing the coronavirus. In fact, some of the most popular tourist destinations require travelers to use the DID enabled application to keep track of the places someone visits and notify them to maintain enough distance between each other to prevent risks.