In a move to address the deficiencies of Know Your Customer (KYC) processes, Big Four accounting firm Deloitte has announced its integration of blockchain technology. Its partnership with KILT, a Polkadot parachain focused on digital credentials, will facilitate this integration. Deloitte aims to improve KYC processes by issuing reusable digital credentials that can be used in various sectors, including traditional finance, decentralized finance (DeFi), private login, age verification, and fundraising.
To ensure privacy, Deloitte has stated that customers will have control over the credentials generated on KILT, which can be accessed on any device of their choice. The firm also plans to launch a “credential wallet” designed as a browser extension, which will be user-friendly and not require extensive blockchain knowledge to use.
Deloitte’s Integration of Blockchain Technology in KYC Processes
With its latest partnership with KILT, Deloitte is continuing its blockchain journey, as the company has been increasingly focused on blockchain technology. In April, Deloitte announced job listings for 300 Web3 roles in the U.S. Other big four companies have not expressed a similar interest in hiring for similar roles.
Moreover, Deloitte audited Circle’s proof-of-reserves earlier this year, a move that other auditing firms refused to do. The company also partnered with Vatom, a blockchain-based firm, to provide metaverse offerings to a wide range of clients.
Moreover, the integration of blockchain technology in KYC processes aims to address several challenges associated with current KYC conditions. By leveraging the properties of immutability, decentralization, and transparency offered by blockchain, this technology can effectively mitigate these challenges.
Therefore, the integration of blockchain technology in KYC processes aims to address several challenges associated with current KYC conditions, such as inefficient paper-based KYC certificates requesting multiple data points, the storage of consumer details on multiple platforms, the inability to use KYC details more than once, and customers not controlling how their sensitive data is deployed.
Micha Bitterli, Head of Deloitte Managed Services, stated that Deloitte’s technology knowledge, reach, and trust places it in a good position to issue credentials that are globally accepted. He also added that the integration of digital credentials has the potential to create new digital marketplaces, including e-commerce, DeFi, and gaming.
