Finance is one of the most heavily regulated industries which is why customer identification and compliance are extremely important. Onboarding requirements for Know Your Customer practices can be burdensome for customers who have to go through a tedious process every time they sign up for an exchange or financial service. On top of this, financial institutions use centralized databases of personal information which can be at risk for data breaches.
Our Verifiable Credential solutions can be used for a variety of credentials in the financial industry including:
- Know Your Customer (KYC) and anti-money laundering checks
- Demonstrating financial history for loans and insurance applications
- Sharing a credit score
- Accessing investment opportunities
Currently, compliance processes are very expensive, which creates a barrier for financial startups. Dock’s Verifiable Credential technology can easily be integrated at lower costs.
In today's business world, financial institutions are under constant pressure to comply with a growing array of regulations. This can make it difficult to keep track of customer data, especially as it relates to sensitive information such as credit scores and income levels. Verifiable Credentials can help financial institutions meet their compliance obligations by providing a secure and tamper-proof way to store and share customer data.
For example, a financial institution could use Verifiable Credentials to issue each customer a unique digital ID. This ID could then be used to access the customer's account information, eliminating the need for paper records or manual data entry. As a result, Verifiable Credentials can help financial institutions streamline their compliance efforts while also protecting the privacy of their customers.
Here is an example of how Verifiable Credentials can make the KYC process more efficient and create a better customer experience:
- 1.Jill completes the KYC process with a KYC company where she submits the relevant documents they need to verify her identity and other important details. Jill and the KYC company have their own DIDs.
- 3.Whenever Jill signs up to a new financial institution or online exchange, rather than going through the entire KYC process with each company, she simply shows them the Verifiable Credential she received from the KYC company and reshares these credentials across any service that requires verifying the same data.
- 4.The companies she is signing up for can instantly check the authenticity of her credential. The data provided in the credentials is cryptographically secured and tamper-resistant which protects the sensitive data from data leaks and hacks.
Financial institutions can rely on Verifiable Credentials to confirm that an individual is who they claim to be. For example, if an employee needs to access sensitive customer data, the financial institution can require them to present a credential that has been verified by a reliable source. This helps to ensure that only authorized individuals are able to access sensitive information.
Verifiable Credentials can also be used to verify customer identities when opening new accounts or conducting other transactions. By requiring customers to present verified credentials, financial institutions can reduce the risk of fraud and protect both their customers and themselves.