Spanish banks go for digital customer ID

Image for post
Image for post

Niuron, a major consortium of Spanish banks, has announced it is developing a blockchain platform for client digital identification verification, according to reports in EuropaPress and Coindesk. The Niuron consortium includes Abanca, Bankia, Caixabank, Caixa Ontinyent, Ibercaja, Kutxabank, Liberbank, Unicaja Banco and Cecabank. Caixabank is Spain’s third largest bank and is in other global blockchain projects, including one with Swiss UBS Group that aims to make transactions faster and lower cost using blockchain technology.

The pilot platform should be ready by the end of 2018 with the aim of providing a blockchain-based system for identifying and recording clients when they open an account for the first time.

This comes ho ton the heels of the GDPR legal framework adopted by the EU on May 25th, which caused the flooding of everyone in Europe’s email inbox with notifications from every website they have ever signed up with about data protection and how each company will observe the new laws. It is forecasted that the adoption of GDPR will create 75,000 privacy jobs and Fortune’s Global 500 companies are estimated to spend $8 billion in order to ensure compliance with the new regulations. The new framework for data privacy and protection aims to create a uniform data regulation within Europe, and to increase individuals’ control over the use and storage their personal data.

Niuron claims that its new blockchain platform for storing the personal details of bank customers will improve the speed of operations, reduce fraud, and prevent money laundering. It will also be of benefit to customers, because it will decrease the amount of time spent on the registration process and provide clients with more control over their personal data, as required by the GDPR.

How soon more banks adopt the blockchain for customer data storage remains to be seen, but as it supports the aims of the GDPR legal framework, it seems logical that there will be many more banks following Spain’s lead.

Written by

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store