There are many questions in the financial industry about the adoption of blockchain technology. A top query is focused on regulatory compliance concerns related to Know Your Customer (KYC), the process of verifying the identity of a consumer as well as any potential risks of illegal intentions toward the business relationship.
By definition, a “smart contract” is a computer protocol intended to digitally facilitate, verify or enforce the negotiation or performance of a contract. This digital banking strategy allows for seamless authentication transactions without third parties.
Once a banking contract is initiated and executed, the contract most often sits on the shelf, which is usually a good thing because it generally means the contract is without issues. But there are other critical components to the contract, including performance factors and maintenance. Prior to smart contracts, which have management and alert protocols built-in, credit unions faced the challenge of determining how best to manage these contracts to ensure that the vendors were adhering to contractual terms.
Topics: Smart Contracts
Self-sovereign identity (SSI) provides members with a lifetime portable digital identity that does not depend on any central authority and can never be taken away. The benefits are far-reaching for both members and credit unions.
One of the main benefits of SSI is that the numerous and cumbersome usernames and passwords that consumers currently have become irrelevant. But, since biometrics and smartphone technologies drive the SSI platform, what happens if a person loses his or her phone, or that phone is hacked or has an injury that impedes a biometric login? Does that member’s SSI become vulnerable? This question is especially important for credit unions to consider as a recent Bankrate survey found that 63 percent of smartphone users in the U.S. have at least one financial app.
Topics: Digital Identity
Each individual identity has various dimensions. This is especially true online, where every account—whether Amazon or online banking—requires a siloed identity, leading to a seemingly never-ending list of usernames and passwords. A recent McAfee World Password Study polled 3,000 people worldwide and found that, on average, each person had 23 online accounts that required a password. While that’s a big number, what is most surprising is that, on average, only 13 unique passwords were used for those same accounts—a hacker’s delight.
Topics: Digital Identity
In February 2019, the documentary, Blockchain City, debuted during the World Government Summit in Dubai. The informative and forward-leaning film, sponsored by CULedger, captures the unfolding impact of blockchain technology on governments as well as the private and public sectors.
“In the next decade or so, a majority of progressive large and small cities will run on blockchain technology,” Ian Khan, director and host of Blockchain City, said in the film. “Today more than ever we need to understand the impact of technology in a simple, concise and clear manner, steering away from hype. This is the only way we can bring business leaders together to work on a common mission of positive change.”