Abstract :

The Efficiency And Reliability Of Know Your Customer (KYC) Verification Remain Critical Challenges In Modern Banking Due To Redundant Data Collection, Privacy Concerns, And Inconsistent Credit Evaluation. The Existing Blockchain-based KYC Systems Provide Transparency And Immutability But Still Face Limitations In Scalability, Interoperability, And Intelligent Risk Assessment. To Address These Issues, This Paper Proposes An AI-integrated Federated Blockchain KYC Framework That Combines Federated Learning, Zero-knowledge Proofs (ZKP), And Hybrid Blockchain Architecture To Enable Secure, Privacy-preserving, And Intelligent Credit Allocation. In The Proposed Approach, Individual Banks Locally Train Machine Learning Models On Customer Data And Share Only Model Parameters Through The Blockchain, Thereby Maintaining Data Confidentiality. A Hybrid Network Leveraging Hyperledger Fabric And Ethereum Ensures Efficient Transaction Validation And Regulatory Auditability. Smart Contracts Are Designed To Manage User Consent, Automate Verification, And Facilitate Real-time Data Sharing Across Institutions. The System Enhances Scalability, Reduces Redundant KYC Processes, And Supports Dynamic Credit Scoring Through Decentralized Intelligence. Experimental Analysis Demonstrates Improved Data Privacy, Faster Credit Validation, And Reduced Operational Overhead Compared To Conventional Blockchain-only Models. The Proposed Solution Contributes A Secure, Interoperable, And Intelligent KYC Infrastructure Aligned With Evolving Regulatory And Technological Landscapes.

Published:

15-2-2026

Issue:

Vol. 26 No. 2 (2026)

Page Nos:

285-291

Section:

Articles

License:

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite