Blockchain and Inter Planetary File System based Secured KYC Document Verification for Banking System

Abstract

Know your client (KYC) is a requirement for the banking system to validate a customer using identity, appropriateness, and risk assessment in establishing a banking relationship. With the developed concern for security, the KYC process is complex and involves a high cost for completing for a single customer. In this paper, we propose a reasonable, abrupt, secure, and transparent platform for KYC document verification for the Banking system through Inter Planetary File System (IPFS) and blockchain technology. The proposed system allows a customer to open an account at any Bank, complete the KYC process there, generate a hash value using the IPFS network and share it with other banks using the blockchain technique. Using a private key, any Bank/financial organization can retrieve, and store customer data (i.e., KYC) securely using the IPFS network if the customer wants to open another account in that Bank/financial organization. The proposed system can avoid repetitive work and save time, and money during the KYC process when someone tries to open an account at multiple Banks. In this paper, we have focused on how the present banking industry, especially the KYC document verification process, can be impacted after using blockchain to store and track the records.