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One of the leading financial holding companies in South Korea, KB Financial Group Inc, has been awarded a patent for a new blockchain-based fintech application security solution.
Employing Blockchain to Improve Security in Fintech
(Source: Pulse News)
It’s been a good day for the world of the blockchain, as another major financial institution has realized the potential of the technology.
KB Financial Group, one of the leading financial holding companies in South Korea and the country’s financial provider, has been awarded a patent for a blockchain-based fintech application security solution.
The bank currently has over $342 billion in assets under management and presides over multiple subsidiaries, located both in South Korea and overseas, Crunchbase data has shown. Among the bank’s many local subsidiaries is KB Kookmin Bank, which became the world’s 60th largest bank as of 2017.
According to an October 15, 2018 report from The Digital Times, KB’s new patent focuses on a blockchain-based solution to improve an “essential” security program for fintech applications. The newly developed technology will reportedly be able to separate the company’s security program from individual apps, effectively enhancing its potential across multiple apps without users needing to upgrade new versions of each app separately.
The publication also explained that the private encryption and decryption keys at the core of the new security solution would be separable and storable on a designated blockchain system. That solves the problem of dealing with users’ physical devices being hacked or stolen, as any illicit transactions would be immediately blocked.
The Digital Times also noted that KB also plans on implementing its new solution in overseas markets. The publication said that Southeast Asia is considered especially vulnerable to hacking, due to the popular practice of downloading pirated apps to mobile phones.
Blockchain Leads the Way in South Korea, but Cryptocurrencies Still Far Behind
Despite the wide array of application blockchain technology has seen in Asia, mainstream adoption still seems light years away from cryptocurrencies.
In an in-house report published in August 2018, KB found that the majority of domestic respondents revealed no intention to invest in crypto. The survey, which involved 600 households with assets of more than $400,000, and 400 with over $800,000 in assets, found that only around 2 percent intended to invest in cryptocurrencies.
The country’s overall sentiment towards cryptocurrencies has mirrored the market’s volatility – the government has both banned anonymous trading and legalized bitcoin as a remittance method. The country’s ban on ICOs has also been lifted, but no government employees or officials are allowed to participate in crypto trade.