Identity specialists Blinking realized that many online transactions still request paper ID documents. How could Blinking build, trial and deploy its fully online service rapidly and cost-effectively?
Blinking built an identity solution based on IBM Cloud Private and IBM Blockchain technologies, enabling verification by password, fingerprint, mobile and Short Message Service (SMS) tokens.
Streamlinescustomer ID recognition, with new users registered easily and remotely
Eliminatesthe threat of compromised data with secure blockchain technology
Savesmeeting arrangement and administration time to enable greater productivity
Business challenge story
Validating our digital identity
With the proliferation of online marketplaces, remote identification has posed a growing challenge for all online retailers and service providers. Waiting in line in a bank branch to present ID documentation is tedious, and many online businesses do not have brick-and-mortar offices.
Identity specialist company Blinking realized that creating a shared, online ID verification service could solve the problem. Blinking aimed to develop an online Know Your Customer (KYC) module, available to banks as a pilot project to demonstrate its capabilities. For financial institutions and regulated businesses with a legal obligation to identify their customers, Blinking’s all-online solution would fit well with the latest mobile app-based offerings.
Miloš Milovanović, Co-Founder and Chief Operating Officer at Blinking, explains: “We wanted our platform to offer the most secure data possible, and we looked for a way to use blockchain technology. How could we build, trial and deploy the service rapidly and cost-effectively, without investing capital in fixed infrastructure – and how could we scale quickly if we succeeded?”
Build fast, trial fast, scale up
Blinking chose to host its new platform using IBM Blockchain technology. Blockchain is a shared, immutable ledger that records the history of all transactions in the network, establishing trust, accountability and transparency for digital transactions.
The Blinking KYC solution enables users to set up and authenticate their identity as a one-time process. For bank, retail and similar online transactions, the Blinking KYC module confirms the customer’s identity—and can use facial recognition, fingerprint scanning and SMS tokens to authenticate users.
Two major Serbian banks have already completed the first stage of a pilot project of the Blinking solution, with three more agreeing to take part in the advanced pilot stage. If consumers choose to change banks, there is no need to visit a branch to re-confirm their ID with paper documentation: the new bank can validate the identity of the applicant through the Blinking KYC solution.
Miloš Milovanović elaborates: “In Serbia there are stringent regulations governing how banks store data, including the EU’s Global Data Protection Regulation requirements. For example, regulated institutions cannot export their data out of the country or even store it in the public cloud. IBM Cloud Private enabled us to comply with Serbian and EU regulations and demonstrate security and good corporate governance for our customers’ data.
“IBM’s biggest selling point was the connection with Hyperledger Fabric, provided as a service within the IBM Cloud Private offering. We rate Hyperledger as the best distributed network on the market with the simplest approach. The fabric within IBM Cloud Private provides access to the best blockchain performance available with today’s technology, enabling Blinking to build a powerful, secure and reliable blockchain solution.”
CS Results - Blinking
Efficiency and security in ID recognition
At the two banks using the pilot version of the Blinking KYC solution, employees can save time by registering and identifying customers remotely rather than having to meet them in-branch. Consumers no longer have to find ID paperwork or fix appointments and can instead confirm web and mobile transactions immediately. The additional three banks that have agreed to take part in the advanced pilot look forward to reaping similar benefits.
Miloš Milovanović continues: “When compared with purchasing, configuring and managing on-premises solutions, hosting Blinking’s KYC solution using IBM Cloud Private dramatically lowered the cost of running our pilot. Using IBM Cloud Private also significantly reduced the time taken to produce our pilot, and the IBM technical expertise helped to eliminate the risk of errors during the setup.
“Deploying to a private cloud solution was a massive bonus. Many of our prospective customers already run on IBM solutions, which gives the pilot banks confidence in our approach, and offers easy integration with their IT infrastructure. What’s more, the IBM brand offers considerable marketing power, and associating Blinking with IBM technology is helping us promote our offering to a range of financial institutions across Serbia and the EU.”
Throughout the project, the IBM team provided ongoing support and advice on how to utilize the IBM Blockchain and Hyperledger Fabric to maximum advantage. IBM Cloud Private enabled Blinking to build and deploy the KYC module by starting small and then scaling rapidly during the banking pilot.
Miloš Milovanović concludes: “With IBM Blockchain and IBM Cloud Private, Blinking is ready to roll out the KYC module at scale, making secure online identity authentication available to all.”
Blinking, headquartered in Belgrade, Serbia, develops blockchain and biometric security solutions. The company mission is to create innovative, efficient and practical software solutions for digital identity management, and for the protection of personal user data.