IOTA announces a new cooperation with the Dutch “de Volksbank”. Together they want to simplify KYC processes.
The IOTA (MIOTA) Foundation cooperates with the Netherlands-based bank “de Volksbank”. The promising and future-oriented alliance between the two parties is about developing a reusable and reusable know-your-customer process. IOTA presents various demonstrative case studies on a blog post. It will be shown how “de Volksbank” can use this KYC technology to simplify business processes for customers.
So far, KYC processes have been very bulky and laborious. Sometimes you have to carry out your own identity confirmation process for every digital service you want to use – and the topic is becoming more and more topical. Because of the regulatory pressure on crypto exchanges, they have to examine their customers more and more carefully in order to avoid trouble themselves. For example, if you want to open an account on Binance and Coinbase at the same time, you have to go through an identity verification process. It becomes even more arduous when you have to carry out such operations at the same bank. It sometimes happens that customers who want to start a company account and liability insurance with “de Volksbank” have to go through two separate KYC processes. The cooperation between IOTA and the bank should simplify this.
Demonstration of the IOTA identity
IOTA itself gives an example of this in a blog on August 10th. For example, if a customer wants to open a new bank account, the bank must first check their identity. Sure, because the bank account should ultimately belong to the right person. In order to go through a KYC process correctly, the customer must either go to the bank in person, submit documents verified by the government and / or carry out video identification. The data sent must then be checked and then confirmed by a person at the bank. This process is time-consuming, expensive, and error-prone. With the IOTA identity it would be possible to simplify this process in such a way that it would be comparable to the creation of an email account. The customer only needs a wallet to store their identity data, such as Selv. IOTA says:
Selv manages the customer’s IOTA-based identity and can share KYC information with the bank. To do this, both the customer and the bank must share their decentralized identifiers (DIDs) and prove that they are in possession of these identities. When both sides are sure of the other’s identity, the customer asks the bank what information they need before sending the required data to them. In future, the customer will only have to scan a QR code to get in touch with the bank and click on “Accept” to share the relevant data.
The recently published cooperation with “de Volksbank” is another step IOTA takes on the way to a digitized future.