American Express Seeks to Adopt Blockchain Tech Against Fraud

The American multinational financial services company American Express is looking to adopt blockchain technology to improve the security system of personal data.

More and more financial businesses are looking for new solutions to improve their operational system. They look at the blockchain tech as an alternative that has shown that its benefits can be implemented in any field.

AMEX is planning to investigate the blockchain technology in order to find solutions to protect the customer’s personal data against attackers. During the Oktane 18 Event held in Las Vegas, AMEX’s Vice President of Technology, Tereasa Kastel revealed the future plans of the company, saying:

“American Express is a very innovative company. They were working on blockchain specifically for financial transactions, but we were starting to explore what would an identity wallet look like, and could blockchain be used to help serve as, both internal, but also external card members and merchants.”

American Express will use Hyperledger blockchain tech

Speaking at other events, the company revealed that it will operate with Hyperledger Blockchain Technology in order to offer traders the opportunity to personalize the Membership Rewards programs. However, the company plans to use blockchain technology to get more benefits than just improving the customer rewards’ system.

Kastel explained:

“Being in the financial industry, we have to be somewhat conservative on what legal and regulatory requirements there are. Out on the other hand, what I would say is that what it empowers an individual user to do in terms of controlling their identity, and have that identity be immutable, is something you can’t pass by – despite what the regulatory controls might be at this time.”

The benefits of advanced technology can be tailored to the company’s system to prevent possible fraud. Keeping in mind that the date registered on the ledger can’t be changed, it ensures a high level of data protection. Also, the new technology will provide a level of transparency that will allow tracking the attackers.

“When identity is done well, with the latest technologies, it removes the impediments for transacting. If you’re in this industry, you have to have a voracious appetite for all things identity. To be able to work in a world where there is constant change, you have to always ensure you can stay ahead of the curve,” Kastel added.

This is definitely a model to be followed and not only by companies in the financial sector. Blockchain technology could bring benefits you have not expected, and the result deserves any expense.