Samsung SDS, the IT subsidiary of South Korean consumer tech giant Samsung Group, has announced that it has completed the development of BankSign, its blockchain-based co-verification system for banks, for the Korea Federation of Banks (KFB). Earlier in June, the KFB first revealed that it is going to replace its old identity or ID verification system with the new system called BankSign.
Until now, banking customers have had to go through the inconvenient process of renewing their digital certificate every year for each bank they are a mobile banking customer of. With BankSign, it would be easier for customers to access the banking services of multiple banks at once. The authentication process has also been improved with simplified passwords, fingerprint and pattern authentication. Hong-Jun Ryu, Executive Vice President of Samsung SDS said:
"BankSign is the first example of applying blockchain technology, which is receiving a lot of attention, to banking services. Samsung SDS will expand its digital transformation business to enhance the competitiveness of banks and financial institutions."
The company added in a statement that the BankSign prevents certificate forgery through synchronization of distributed agreements, which is a characteristic of blockchain technology, and real-time authentication information between banks. Blockchain encrypts communication segments and double-encrypts data and networks, enhancing security. This enhanced security has made it possible to increase the validity of digital certificates from 1 year to 3 years, it added further.
Samsung SDS has been an active member in the development of blockchain technology. In 2015, it first established its blockchain dedicated department and in 2017, it launched Nexledger, a blockchain platform with real-time mass transaction processing and smart contract capabilities and a management monitoring system. In June of this year, the company also announced the plans to launch 'Nexfinance', its own digital banking platform for finance-related businesses. Nexfinance will offer services such as digital identity, financial concierge, AI virtual assistant, and automatic insurance claim.