Japan’s Financial Services Agency and financial institutions in the country have developed a system whereby consumers in the country would be able to create a common identification to be used to open accounts at multiple banks and financial houses without the hassle of re-entering the information. The facility will be introduced in 3 big banks in the country to start with. An account holder at one bank can register for a shared ID. If the individual wishes to open an account at a second bank, all he or she needs to do is provide the common ID through a smartphone app, and confirm her identity through fingerprint or facial scan. The personal data will be stored and administered by blockchains. The is said to decrease the risk of data breaches. Blockchain records can also help authorities investigate identity theft or suspect transactions. The FSA is expected to begin tests of the innovation next month. Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp and Mizuho Bank will be the first to launch the service.
