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Using Blockchain Technology to Redesign Know-Your-Customer Processes Within the Banking Industry

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Business Process Management Workshops (BPM 2020)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 397))

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Abstract

Blockchain has emerged as a technology with the potential to innovate business processes. The potential benefits of this technology have attracted the attention of banks. In particular, banks are interested in redesigning compliance processes to reduce costs and risks. One of the most crucial compliance processes is that of the Know-Your-Customer (KYC) process. The KYC process serves to ensure that banks assess the risk of doing business with a client and adopt appropriate mitigation strategies. The KYC process is mandatory, expensive, reduces customer satisfaction, and does not add value to the banks. Therefore, banks seek to use technologies to redesign the KYC process. In recent years, blockchain technology has been considered for the redesign of the KYC process. However, history has taught us that merely substituting existing technology has limited value. Rather, it is necessary to use the capabilities of new technologies, such as blockchain, to enable redesign of the KYC process. In this paper, we examine how blockchain technology can enable the redesign of the Know-Your-Customer (KYC) process. To this end, we conduct a case study and discuss how the capabilities of blockchain technology can enable banks to redesign their KYC processes.

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Acknowledgments

This research is funded by the European Research Council (PIX project).

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Authors and Affiliations

  1. University of Tartu, Narva Mantee 18, 51009, Tartu, Estonia

    Kristin Kamilla Kirss & Fredrik Milani

Authors
  1. Kristin Kamilla Kirss
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  2. Fredrik Milani
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Corresponding author

Correspondence to Fredrik Milani .

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Editors and Affiliations

  1. Universidad de Sevilla, Seville, Spain

    Adela Del Río Ortega

  2. Kühne Logistics University, Hamburg, Germany

    Henrik Leopold

  3. Universidade do Estado do Rio de Janeiro – UERJ, Rio de Janeiro, Brazil

    Flávia Maria Santoro

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Kirss, K.K., Milani, F. (2020). Using Blockchain Technology to Redesign Know-Your-Customer Processes Within the Banking Industry. In: Del Río Ortega, A., Leopold, H., Santoro, F.M. (eds) Business Process Management Workshops. BPM 2020. Lecture Notes in Business Information Processing, vol 397. Springer, Cham. https://doi.org/10.1007/978-3-030-66498-5_19

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  • DOI: https://doi.org/10.1007/978-3-030-66498-5_19

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-66497-8

  • Online ISBN: 978-3-030-66498-5

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