Andrzej Horoszczak, CEO and founder of Billon Group, claims that his durable medium solution meets the EU and local regulatory requirements.
Durable medium has become one of the biggest regulatory challenges for the financial institutions. Banks are analyzing durable medium options and looking into innovative alternatives. Those include blockchain technology. Can blockchain meet regulatory demands?
Andrzej Horoszczak explains why regulations are very challenging. The first test of a durable medium solution is to make it technically impossible to modify or delete customers’ documents. Horoszczak believes that, if documents are saved in blockchain and distributed ledger architecture (DLT) that is outside of the publisher’s control then that test is fullfilled. Because documents are written in blockchain, no one can change them after they are published. DLT provides an automated and secured retrieval and redundancy. This is a great evolution from legacy IT document solutions that rely on individuals/administrators to provide for security of all customer data.
Data security is an additional advantage of DLT architecture over legacy IT, because data is protected at a more granular level. In Billon and BIK’s solution, complete documents are stored across several independent nodes, guaranteeing the highest level of accessibility. Document redundancy guarantees that even when part of the network is down, customers can still retrieve their documents.
GDPR, and especially the right to be forgotten, poses an incredible challenge to data storage solutions. Billon’s founder says that it created a lot of additional manual work, because clients request this right selectively across their portfolio. Because documents are stored in multiple copies, a bank needs to retrieve and delete them separately. In contrast, Billon/BIK’s DLT/blockchain executes the right to be forgotten automatically in all copies. Blockchain requests a customer’s and bank’s authorization and makes document unreadable, while preserving the audit trail.
According to him, a durable medium solution should not only serve the current regulatory purpose, but also be flexible to meet the future customer’s and regulatory changes.
