Secure and Transparent KYC for Banking System Using IPFS and Blockchain Technology

Abstract: Know your client (KYC) is a rule for the financial framework to approve a client based on character, propriety, and risk assessment when establishing a financial relationship. With the growing concern about security, the KYC cycle is perplexing and includes a significant cost for completing for a single client. Through InterPlanetary File System (IPFS) and blockchain innovation, we propose an affordable, quick, secure, and simple stage for KYC archive check for the Banking framework. The proposed framework allows a client to open a record at one bank, complete the KYC cycle there, and generate a hash value using the IPFS organization and distribute it via the blockchain method. After obtaining the confidential key, any Bank/monetary association can recover and securely store client information (i.e., KYC) utilizing the IPFS organization if the client wishes to open another account with that Bank/monetary association. The proposed framework can save time, money, and tedious work during the KYC cycle when someone tries to open a record at multiple banks.

Keywords: Blockchain, Smart Contact, KYC, IPFS, Gpg4win, and Decentralization