Samsung, under its IT arm Samsung SDS Co., has unveiled its blockchain based platform, BankSign, to allow people to make transactions at different banks more easily.
The Korea Federation of Banks (KFB) launched BankSign in June as a way to allow domestic retail banks to strengthen their verification systems by digitizing both mobile and online banking.
The platform allows customers to make transactions using the mobile banking systems of different banks. The user can conduct transactions at different banks with just one bank’s certification.
Because blockchain technology minimizes the vulnerabilities of alterations and forgeries, certifications can be done on BankSign with various methods, including fingerprints, passwords and patterns.
The platform’s data sharing network and connectivity to banks’ systems ensure safety, Samsung SDS noted in its announcement. In addition, certification can be valid up to three years via the sharing network.
Samsung created a division for developing blockchain technology in 2015, then introduced Nexledger, its first blockchain business platform, in 2017. BankSign marks the initial application for its banking services and blockchain technology, the company noted.
Samsung plans to continue expanding its digital transformation enterprise and expects to contribute to the competitiveness of financial institutions.
The KBF noted that BankSign is the first project that the local banking community developed utilizing blockchain technology.
Improved Security For Banks
Prior to BankSign, Korean banks had to use a 20-year old security system that was inefficient. Since that time, the Korean government changed its “Digital Signature Act” policy that required domestic institutions to use a public certification system
Samsung established SDS in April 2017 along with a biometric authentication solution called Nexsign to allow customers to access services using a single ID authentication. While Nexsign is not related to BankSign, Samsung tested its Nexledger blockchain with its conglomerate’s credit card company, Samsung Card in October 2016.