Imagine if it were possible for your identity to be available at any time, where third parties could only access it with your consent. The discourse that everyone has the right to own their digital identity has been gaining momentum around the world. And the path to this is the development of “decentralized digital identity” solutions.
Here, it is important to clarify that according to the concept of self-sovereign digital identity, owners (holders) of the digital identity are responsible for the control and management of their data. And that not only includes basic personal data but also information about your relationships with other people, companies and even things.
- Make the identification process less bureaucratic for the final borrower. This allows the use of a unique financial credential for the identification and access to financial services.
- Empower the final borrower to control the use of their financial data. The intention here is to allow the final borrower to manage which financial institutions they wish to share their data with, what data and for what purposes that data will be used through notifications and consent requests to access to the information managed by the solution.
- Facilitate and automate the process of admitting new customers to financial institutions, also known as onboarding, through the decentralized management of keys and the use of unique credentials for different sectors. This will mainly assist the onboarding process for new startups in the financial sector (the so-called fintech) because they emerge without a customer portfolio. The fintech that participates in the FinID network can consider all service providers that have a valid credential as potential customers.
- Enable the implementation of the Know Your Customer concept. Since financial institutions will be able to directly request verifiable credentials issued by other institutions through the FinID solutions — be they financial or not — they will also be able to assess the ownership, the issuer and the authenticity of the information by having access to the pertinent information from each of your customers. This will allow a greater and better-defined understanding of users’ profiles, thus enabling the creation of specific or customized services for the borrower of financial services and improving the relationships in the Brazilian National Financial System.
- Transforming the means of accreditation and authentication in the financial sector. The development of a decentralized solution based on blockchain technology generates a reliable mechanism for issuing verifiable credentials to the final borrowers of the National Financial System, enabling the automation of authentication and authorization processes with the use of such credentials without the need for a third service or central authority. In addition, the solution aims to facilitate and automate the digital onboarding process of consumers with financial institutions, allowing these institutions to focus on developing new digital services for their consumers instead of spending time and resources on developing these technologies and delivering a new form of accreditation for borrowers of financial services, thus obtaining red tape and alternatives for the relationship between these parties in the financial sector.
Tatiana Revoredo is a founding member at the Oxford Blockchain Foundation and is a strategist in blockchain from Saïd Business School, University of Oxford. Additionally, she is an expert in blockchain business applications from MIT and is the CSO of theglobalstg.com. Tatiana has been invited by the European Parliament to the Intercontinental Blockchain Conference and was invited by the Brazilian Parliament to the Public Hearing on Bill 2303/2015. She is the author of two books — Blockchain: Tudo O Que Você Precisa Saber and Cryptocurrencies in the International Scenario: What Is the Position of Central Banks, Governments and Authorities About Cryptocurrencies?
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