Blockchain-Based Identity Verification for Financial Inclusion
Arup Sarkar, Prantik Kumar Mahata, Soham Basuri · 2025
Integrating artificial intelligence (AI) with blockchain offers a transformative approach to enhancing security in financial services. This fusion leverages AI’s data analysis and anomaly detection with blockchain’s transparency and immutability, enabling improved fraud prevention, identity verification, and regulatory compliance. AI-driven tools can detect suspicious activities in real time, bolstering transaction security while blockchain ensures an unalterable, traceable record. Combining AI-powered biometric authentication with blockchain identity management enhances security and simplifies customer onboarding. Smart contracts further automate and secure transaction processes, reducing risks and minimizing the need for intermediaries. Together, AI and blockchain provide financial institutions with a robust framework for security, transparency, and efficiency in digital transactions, creating a safer, more reliable financial ecosystem.