Deloitte turns to blockchain for improved KYC processes

Big Four accounting company Deloitte has confirmed its integration of blockchain technology as part of its offering to remedy the deficiencies of Know Your Customer (KYC) processes.

The integration was announced in a May 4 press release, with Deloitte revealing its new partnership with KILT, a Polkadot parachain focused on digital credentials. KILT will assist Deloitte in the issuance of reusable digital credentials.

Several use cases can be gleaned from the integration, including its application in traditional finance, decentralized finance (DeFi), private login, age verification, and fundraising. With privacy at the core of the offering, Deloitte added that the credentials generated on KILT would be in control of the customer on any device of their choice.

The accounting firm disclosed that it would launch a “credential wallet” designed to operate as a browser extension that will not require extensive blockchain knowledge to use. Deloitte undersigns all issued credentials, with the firm having the right to revoke the signature upon specific requirements.

“Digital credentials that are convenient, cost-effective, and secure have the potential to open new digital marketplaces, from e-commerce and DeFi to gaming. Deloitte has the technology knowledge, reach and trust to issue credentials that are globally accepted,” Micha Bitterli, Head of Deloitte Managed Services, said.

Both KILT and Deloitte confirm that the present KYC conditions are underwhelming due to several factors. Right off the bat, the use of paper-based KYC certificates requesting multiple data points is seen as inefficient by Deloitte, “creating extra work in the process.”

Other challenges include the storage of consumer details on multiple platforms and the inability to use KYC details more than once. Lastly, customers typically do not receive their KYC certificates and do not control how their sensitive data are deployed.

Deloitte’s steady blockchain march

Deloitte’s latest partnership with KILT is no surprise, as the accounting giant has been increasingly tilting toward blockchain over the last few months. In April, Deloitte announced job listings for 300 Web3 roles in the U.S., while other big four companies expressed no desire to go on a similar hiring spree.

Deloitte had dug its heels into the Web3 ecosystem after auditing Circle’s proof-of-reserves at the start of the year despite the refusal of other auditing firms. A previous partnership was struck with blockchain-based firm Vatom to provide metaverse offerings to a wide spectrum of clientele.