Highlights of the eKYC solution applied in the banking and finance industry
In Vietnam, from March 5, 20121 all banks are officially allowed to apply online identification method to open online accounts for customers. Since July 2020, many banks have implemented eKYC solutions. Banks that have implemented eKYC said that their business activities have achieved outstanding results when the number of new customers increased rapidly, the number of transactions through Mobile Banking and Internet Banking channels also increased significantly. According to the announcement of the State Bank, in the year 2020, the number of payment transactions via Mobile Banking channel increased by nearly 124% in quantity and 126% in value compared to 2019, the number of payment transactions via the Internet increased. nearly 9% in volume and 26% in transaction value compared to 2019. Up to now, more than 20% of banks in Vietnam have applied eKYC in customer identification such as VPBank, TPBank, Vietcombank, VietinBank, ACB, Ban Viet… In which, VPBank is the first bank to successfully apply eKYC. After only 2 months of launch, VPBank has 15,000 new registered accounts, equal to 50% of the whole 2020 estimate. Next is HDBank, after only 1 month of implementing eKYC online identification on HDBank app, which has attracted nearly 15,000 registered customers.
KYC stands for Know Your Customer. Financial institutions such as banks and Financial Companies have mandated KYC regulations before providing any financial services to customers. KYC is done for the purpose of establishing the identity and verifying the login information of any customer.
eKYC (electronic Know Your Customer) is an electronic customer identification, or online customer identification, allowing banks to identify customers 100% online, simplifying paperwork verification, birth verification biometrics without having to meet face-to-face at the transaction office like traditional KYC.
In the current 4.0 technology era, banks apply eKYC as a strategy to attract customers. eKYC is done automatically, shortening the verification time, saving time for customers and minimizing costs for the bank’s operations. Besides banking, eKYC is being widely applied in many fields such as healthcare, public services, telecommunications, tourism, etc.
Benefits of eKYC electronic customer identification solution Improve customer experience Increase onboarding rate Cut operating costs High customer information security and management
If in the past to identify customers, it was necessary to meet face-to-face, and to compare ID documents took a lot of time, then eKYC will identify customers at any time, anywhere with an internet connection based on the Internet. Artificial intelligence technology such as: Face-matching: Matching faces with photos on customer-supplied ID documents Character recognition (OCR): Reading and extracting information on paper sheet, compare personal information with a centralized database of user identity. Liveness detection: Verify that a real person is making a transaction, not a transaction made by a robot.. .
OCR technology is integrated in the eKYC process to extract information from identity documents such as passports, ID cards, driver’s licenses and upload encrypted information to the system. The whole process from data extraction to metric formation takes no more than 3 seconds making the process fully automated and accuracy up to 99%. Verified Documents For Citizenship Identity Verification Check the accuracy of the format like ID number, 2D barcode. Verify your name, date of birth, and address. Detects crumpled, folded edges. Check if the image has photoshop interference or fake. Verify microtext, hologram, rainbow print, guilloche pattern. Opacity detection, fraud. For Passport Verification Consider the match of name, date of birth and expiration date with the machine readable zone. Fraud detection through fonts, holograms, signatures. Check the correctness of the format on the passport. Detects crumpled, folded edges. Determine if the image is fake. Verify hologram, print rainbow. Opacity check, cheat. To verify a Driver’s License Check the accuracy of the format. Detects crumpled, folded edges. Check if the image is photoshopped or fake. Verify hologram, rainbow print, guilloche pattern. Opacity detection, fraud. Check if the image is photoshopped or fake. Verify hologram, rainbow print, guilloche pattern. Opacity detection, fraud. Check if the image is photoshopped or fake. Verify hologram, rainbow print, guilloche pattern. Opacity detection, fraud.
With eKYC technology is Face matching, they will use computer algorithms to pick out specific details, especially about a person’s face. These details, such as the distance between the eyes or the shape of the chin, are digitized and compared with data on other faces collected in a facial recognition database. Data about a particular face is often referred to as a face pattern and differs from a photograph because it is designed to include only certain details that can be used to distinguish this face from another. is different. Face matching is a particularly useful biometric method for customer onboarding: Nearly all mobile devices have built-in cameras that support it. The user experience of taking a selfie (photo/video) is particularly intuitive and convenient. Face recognition with 98% accuracy. Face matching is a biometric method that is particularly useful for digital onboarding
Liveness detetion Technology FPT.AI’s Liveness technology is a level 2 defense barrier in the eKYC electronic customer identification process, helping to prevent face spoofing. Simply put, Liveness Detection technology to verify real people are working in real time, and the identification steps are genuine, not fake. In the eKYC online identification process, customers only need to provide 1 photo and 1 selfie video taken directly with the camera of a smartphone, tablet or computer webcam. Then Liveness technology will analyze the data, preventing the videos from being played back.
Fraud detection Fraud detection is a technology used to prevent money or assets from being obtained by forgery. This technology is used to verify exactly a certain individual in account-related tasks to help protect customer data and information, avoiding the case of bad actors using that information illegally. lose user trust.
E-Signature An electronic signature is a certification of the customer’s agreement to accept the conditions for using the services provided by the bank. Electronic signatures can replace handwritten signatures in transactions. E-Signature technology allows customers to sign documents anytime, anywhere on any device. As a result, it improves transaction speed and increases user experience.
On December 4, 2020, the State Bank of Vietnam issued Circular No. 16/2020/TT-NHNN amending and supplementing a number of articles of Circular No. 23/2014/TT-NHNN, including some main contents: The following: 1. Banks and branches of foreign banks that open payment accounts by electronic means must develop, promulgate and publicize the process and procedures for opening payment accounts by electronic methods in accordance with the regulations. in accordance with the provisions of this Article, the law on prevention and combat of money laundering, the law on electronic transactions, the relevant legal provisions on ensuring the safety and confidentiality of customer information and the safety of the operation of the Company. banks, foreign bank branches. 2. Banks and foreign bank branches may decide on methods, forms and technologies to identify and verify customers in service of opening payment accounts by electronic method; take responsibility for arising risks (if any) and must meet the following minimum requirements: – Having solutions and technologies to collect, check, compare and ensure the correct match between identified information customer, customer’s biometric data with the corresponding biometric information and factors on the customer’s identification papers as prescribed or with personal identification data authenticated by a state agency authorized or by another credit institution or by an organization providing electronic identification and authentication services – There are technical measures to confirm that the identified customer agrees with the contents of the agreement. Agreement to open and use a payment account – Develop a process for risk management, control and assessment. The process of risk management and control must be regularly reviewed and completed based on information, updated data during service provision – Store and preserve fully and in detail over time for customer identification information and data during the process of opening and using a payment account by a customer . 3. Banks and branches of foreign banks shall base themselves on technological conditions to assess risks, determine the scope of use and decide to apply the transaction limit via the customer’s current account opened by payment method. but must ensure that the total transaction value limit (debit) through the payment accounts of that customer does not exceed 100 million VND/month/customer. 4. Banks, foreign bank branches may decide to apply a transaction limit through a payment account opened by electronic methods higher than the limit specified above in one of the following cases: – Bank , foreign bank branches apply video call solution to collect, check and verify customer identification information in the process of opening payment accounts to ensure efficiency as the process of identification and identification Customer information through face-to-face meetings.- After the bank or foreign bank branch has identified and verified customer information through face-to-face meeting with the account holder – Transactions of money transfer for savings and term deposits electronically to the account holder at that bank or foreign bank branch take the initiative to debit the customer’s current account as prescribed – The opening of a payment account by electronic method does not apply to joint payment accounts, individual customers being foreigners and the following subjects : Persons between full 15 years old and under 18 years old who have not lost or restricted their civil act capacity Persons who are under 15 years old, have limited civil act capacity, or have lost their civil act capacity as prescribed of the law of Vietnam opening a payment account through a legal representative Person with limited awareness and behavior control according to the provisions of Vietnamese law opening a payment account through a guardian
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