Know your customer (KYC) processes place a great burden on banks, because they are costly, inefficient, and inconvenient for customers. While blockchain technology is often mentioned as a potential solution, it is not clear how to use the technology’s advantages without violating data protection regulations and customer privacy.
In a recent research project, we demonstrated how blockchain-based self-sovereign identity (SSI) can solve the challenges of KYC. We followed a rigorous design science research approach to create a framework that utilizes SSI in the KYC process, deriving nascent design principles that theorize on blockchain’s role for SSI.
Please read more about our research in our latest paper published in Information & Management (50 days' free access).