Self-Sovereign Identity for Digital KYC

Current know-your-customer (KYC) processes at financial institutions are inefficient, costly, and – in many cases – inconvenient for customers. Among the often-mentioned solutions to improve KYC processes are blockchains and self-sovereign identity (SSI). However, the literature provides little guidance on those technologies with regard to regulatory compliance and efficiency. Hence, we propose a framework for blockchain-based SSI in KYC processes, which can mitigate some of the current challenges of KYC. Our framework provides guidance for practitioners and academia on how to design blockchain-based SSI processes in KYC.