Privacy Preserving and Trustworthy E-KYC System Using Blockchain

E-KYC which stands for electronic know your customer are designed to protect financial institutions against fraud, money laundering, corruption, terrorist financing, etc. So, e-KYC is the process where customer’s identity is verified digitally by authorized organizations and agents via Aadhaar authentication. The security and privacy of e-KYC-related documents stored in centralized databases is becoming a major issue. The e-KYC process is tedious as customers have to go through the same process for every bank or financial institution they want to work with. Therefore, we propose a new solution based on a decentralized network of independent parallel technologies or blockchain technologies. This optimizes the costs of an institution’s existing KYC verification process and increases customer trust in the bank, making the bank smoother. Blockchain-backed KYC systems are cryptographic and cost-effective in terms of traditional methods used. Also, customer will also have knowledge about the banks with whom the personal data is being shared with.