Traditional digital banking is hampered by inefficient, repetitive and costly identity verification processes like Know Your Customer (KYC), which create significant friction for customers and operational burdens for financial institutions. This paper introduces a novel framework that integrates Self-Sovereign Identity (SSI) and Verifiable Credentials (VCs) with a permissioned blockchain ecosystem to address these challenges. The proposed user-centric model enhances security, streamlines regulatory compliance, reduces fraud, and empowers users with direct control over their digital identities. By leveraging the immutability of blockchain for trust and the portability of VCs for data exchange, this framework fundamentally re-architects the trust relationship between customers and banks, paving the way for a more efficient, secure, and inclusive financial future.
Anuradha Badage (Mon,) studied this question.