News Flash: Brazil’s Banks to Back Blockchain-based ID

New platform set to use mobile phone-derived personal data to generate a secure ID

Brazil’s banks are preparing to implement a standardised blockchain platform that uses an individual’s mobile phone and SIM card information, combined with other smartphone-derived personal data, to authenticate and verify their identity, according to a report by Cointelegraph Brazil. The article says the Hyperledger Fabric-platform identity solution, co-developed by IBM and the country’s central bank CIP, will be integrated into the Brazilian Payment System, which is used by all financial institutions in the country.

The platform will use the data from the individual’s handset and SIM to generate a secure ID, which will be recorded on a blockchain that can be used by banks to authenticate access credentials, Cointelegraph Brazil reports. However, IBM and the central bank have yet to officially confirm the full details.

In Northern Europe, almost 40 per cent of people registering for a bank account still abandon the registration process, according to a survey of 3,500 adults across Finland, Germany, the Netherlands, Norway, the UK and Sweden by Signicat, which provides digital identity solutions. The research found that applications for financial services are abandoned 38 per cent of the time, down from 52 per cent in 2016, thanks to broader use of digital IDs. However, one quarter of the respondents still said the onboarding process is difficult to complete or worse.

Signicat says onboarding processes are faster in countries with particularly high digital identity adoption rates, such as Sweden and Norway, where more than one fifth of applications are completed in less than five minutes. In the UK, only 9% of applications are completed in under five minutes, according to Signicat.

For more information, please see the Cointelegraph article and the Signicat research