With the Reserve Bank of India identifying the centralised Know Your Customer Registry (c-KYCR) as a high-risk source for data validation, the emerging fintech industry is pushing for a decentralised, blockchain-powered, database for better quality of data.
Multiple industry insiders ET spoke with said a centralised KYC registry might become difficult to maintain given the legacy players in the Indian financial services industry. Instead, if a blockchain-powered platform could be built, perhaps issues around faulty data, dated information and such could be solved.
Tech companies like Tata Consultancy Services, Wipro and IBM have already built decentralised identification platforms.
“TCS has a solution called Quartz, leveraging blockchain and AI technologies that address financial institutions’ KYC, AML (anti-money laundering) and fraud management needs,” said R Vivekanand, president of BFSI products and platforms at TCS.
Wipro has a solution named DiceID, a decentralised platform for the verification of identity credentials.
“DiceID leverages verifiable credentials protocol which provides a solution to the challenges related to credential sharing…which helps…establish trust and identity in digital transactions using a privacy respecting method,” said Varun Dube, general manager, Wipro Lab45’s DiceID platform.