The existing data centralisation model makes organisations particularly
vulnerable. The number of cyber-attacks is on the rise and with it, the
theft of millions of customers' personal data. Yahoo: 1 billion accounts
hacked in 2013, 500 million in 2014; eBay: 145 million hacked in 2014;
LinkedIn: 117 million in 2012; JPMorgan: the accounts of 76 million
retail customers and 7 million institutional customers hacked in 201418.
On the blockchain, data is not stored on a central database and
information is protected.
Blockchain technology would lead to substantial gains by pooling
processes through a shared, encrypted database. Goldman Sachs
considers that consistent, coordinated use of blockchain technology in
banking could save the industry between US$ 3 billion and US$ 5 billion
a year in KYC and anti-money laundering (AML) costs 19.
Thanks to InterchainZ, a project borne out of a joint initiative between
PwC KYC Centre of Excellence and the company Z\Yen, a KYC database
prototype has been created using blockchain technology.
The idea is to store and encrypt customer data and verify20 all those
consulting their documentation as well as any changes made (marriage,
death, etc.). Customers are given an individual encryption key which
they then choose whether or not to make available to financial
institutions.