Blockchain in Banking

Blockchain-based digital banking ID registry orchestrates electronic Know-Your-Customer (eKYC), enhancing and accelerating new account provisioning from hours to seconds


The Bankers Association of the Philippines (BAP) is the lead organization of universal and commercial banks in the Philippines. BAP continues to push the envelope for innovation and financial inclusion. In 2019, with the help of Amihan, BAP introduced a blockchain-based digital banking ID registry.

The Burden of KYC is with the Customer


The Know Your Customer (KYC) process is a requirement for opening a new bank account. Banks must comply with KYC regulations to limit fraud. However, most banks’ customer onboarding processes are outmoded (paper-intensive and manual), redundant, and time-consuming. On top of these, there is no transparency over the usage of customers’ data. From the customer’s perspective, KYC is a slow and complicated process. Banks lose customers even before they can onboard them.

The Burden of KYC is with the Customer


The Know Your Customer (KYC) process is a requirement for opening a new bank account. Banks must comply with KYC regulations to limit fraud. However, most banks’ customer onboarding processes are outmoded (paper-intensive and manual), redundant, and time-consuming. On top of these, there is no transparency over the usage of customers’ data. From the customer’s perspective, KYC is a slow and complicated process. Banks lose customers even before they can onboard them.

Bringing Customer Data into Blockchain


Centered on “self-sovereign identity,” BAP’s blockchain-based ID registry enables a digital KYC, where customers have to complete the KYC process only once. 

As customers submit and accomplish necessary documents, their personal information is stored on a private and secure blockchain shared by all of the members of the BAP. 

When a customer, who already has an account with Bank A, chooses to open a new account with Bank B, the latter can simply request for the customer’s personal information from the former. 

Since the customer has already completed the KYC process with Bank A, Bank B can proceed to create an account for the customer without the need for another KYC.

When Bank B requests the customer’s information from Bank A, the customer is notified by Bank A that it is asking for permission to release the data. Data gets transferred only upon the customer’s authentication or permission.

This setup allows for a seamless and secure way to move customer data across the BAP network of banks.

Improved Compliance and Customer Experience


The blockchain-based digital banking ID registry has already delivered positive results. 

Now, there is no need to repeatedly request for customers to fill up an account or application form. The onboarding process has been significantly streamlined. The ID registry has enabled banks to deliver a more frictionless experience for its customers.

Bank customers also now have immediate access to other services and products offered by BAP bank members, such as loans, investments, or insurance products. 

What’s more — now that customers’ data are stored on the blockchain — customers gain full control over their data. Any action that involves the use of their personal information must first be approved by the customer. The customer will also have the option to select which pieces of their data will be shared.

BAP is committed to further promote a robust banking ecosystem. BAP believes that digital transformation will involve a lot of hard work, however, the organization “remains excited about our plans to transform the Filipino experience together with trusted partners, like Amihan.”

The Future is Now


In an industry that’s becoming increasingly competitive, banks need every inch they can get to win with customers. Blockchain in banking will not only help curb fraud, blockchain will transform the Philippines’ banking landscape by providing efficiency, accuracy and transparency.

Banks who take advantage of the power of blockchain will become more agile and drive competitive advantage.