Korean blockchain bank and fifth-largest bank in the country, Nonghyup, has begun using blockchain technology to authenticate the identity of their staff. NH NongHyup Bank introduces a “mobile employee ID” service with blockchain-based distributed ID technology for the first time in Korea at NH Digital Innovation Campus in Seocho-gu, Seoul.
Distributed ID technology is a term referring to an electronic identification system that manages identity authentication (ID) based on blockchain technology, which allows individuals to have the right to control personal information, and can prevent the massive leakage of personal information generated by the agency holding personal information.
More than 20 of the bank staff will use the new ID system to register when they got to work. With a digital key card on their mobile phones, they can enter and exit their work place. The system records and works on data on a blockchain network as records on it can’t be changed and won’t get leaked.
If the Distributed ID trial goes off without a hitch, Nonghyup plans to expand its services on blockchain. The bank said that it will explore the possibility of adding additional features including in-house digital payments and meeting management. The partnership between the bank and the telecom company is among the Initial DID Alliance put in place by a conglomerate of firms in the Asian country alongside Samsung, Woori Bank, etc.
The convenience of employees has increased significantly as individual employees can manage their entry and exit certificates and commuting after applying and issuing them via mobile. In the future, the company is planning to expand its visit reservation and payment function.
Since 2018, Nonghyup has built a reputation as a cryptocurrency-friendly financial institution. It was the only South Korean bank to partner with Bithumb—one of the country’s largest crypto exchanges—to process withdrawals and deposits.
In South Korea, crypto exchanges use virtual bank accounts, a service offered by major banks that enables users to make instant deposits and withdrawals of South Korean won. That means they can hold the currency securely on exchanges.