Borrowing money from banks is a time-consuming and complex process. Banks accept loan applications and lend money to only good-risk borrowers.
To ascertain the right borrowers, banks collect details of personally identifiable information (PII) such as DoB (Date of Birth) government IDs, electricity bill, passport number, and whatnot. They use information bits to assess an applicant’s credit rating that predicts their debt payback ability, and the likelihood of debt default. Also, regulations in many cases require certain PIIs to be shared with regulatory authority, such as money laundering.
The prime concern with holding PIIs in large amounts is that it exposes the data to threats like hacks and tempering. It makes the PIIs stored in centralized bank servers an easy target for cyber-terrorists.
Solution: Hyperledger Indy Hyperledger Indy is one of the prominent blockchain technology frameworks under the Hyperledger blockchain application development project for banking use cases.