Know your customer (KYC) processes place a great burden on banks, because they are costly, inefficient, and inconvenient for customers. While blockchain technology is often mentioned as a potential solution, it is not clear how to use the technology's advantages without violating data protection regulations and customer privacy. We demonstrate how blockchain-based self-sovereign identity (SSI) can solve the challenges of KYC. We follow a rigorous design science research approach to create a framework that utilizes SSI in the KYC process, deriving nascent design principles that theorize on blockchain's role for SSI.
@article{arxiv.2112.01237,
title = {Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity},
author = {Vincent Schlatt and Johannes Sedlmeir and Simon Feulner and Nils Urbach},
journal= {arXiv preprint arXiv:2112.01237},
year = {2021}
}