A “mobile ID” service will be made available by the end of October through which people can verify their identity to make financial transactions only with information saved in e-wallets on smartphones. This will enable accredited certification on mobile devices, and people will be able to open bank accounts both online and offline even without their certificate of resident registration or driver’s license.
The Korea Financial Telecommunications and Clearings Institute (KFTC) announced Monday that the mobile ID service based on blockchain technology will be commercialized at the end of this month. If issued by financial institutions, the mobile ID card can be used to verify people’s identity on mobile devices. “Being the first to be commercialized in the country, the service has been developed to meet the global standards,” the KFTC said.
The institution’s mobile ID service uses blockchain technology that stores data in different parts and verifies the reliability of users. The service is also regarded safe from attempted hacking attacks, as each and every user’s data should be handled one by one for any of the data to be counterfeited and falsified.
The mobile ID issued by financial institutions will be saved in an application (app) with the high level of security including an e-wallet of smartphones. This will allow users to join the Robo Advisor service of fintech firm Fount without a physical identification card like a certificate of resident registration or driver’s license. The Financial Services Commission (FSC) designated it as an innovative financial service in June and lifted related restrictions.
In addition, it is also expected that the new type of identification methods will be used to open a bank account online and to verify identity at the counters of financial institutions. “The mobile id methods are expected to expand their service scope if the technology’s safety and convenience are confirmed after the test period of one year,” Park Jeong-hyeon, head of the Advanced Authentication Department of the KFTC.
The mobile ID will also gradually include features to authenticate oneself for financial transactions. This means that the identity card will be used for accredited certification, which is required for logging in, checking one’s account, transferring money, and trading stocks. According to the KFTC, some 30 financial institutions including six banks and securities firms, insurance companies, and fintech businesses are preparing to introduce the service. The new mobile ID is set to compete with similar services currently available in the market such as BankSign and Chain ID.
The KFTC also plans to launch a new service that will provide mobile ID holders with customized financial data based on their personal information. The institution is expected to expand the scope of information to be saved in e-wallets to include certificates issued by various public institutions as well as private certificates.
Gun-Huk Lee email@example.com