Biometric eKYC checks increase for Thai bank accounts, Malaysian SIM registration
Five banks in Thailand are using biometric facial recognition to meet KYC regulation requirements when opening new customer accounts, the country’s central bank has confirmed as it issued guidelines for biometrics use, according to The Nation Thailand.
A total of 14 banks and non-bank financial institutions have applied to use biometric identity verification for KYC purposes, according to Bank of Thailand Assistant Governor Siritida Panomwon Na Ayudhya. Kasikornbank, Bangkok Bank, Krungsri (also known as Bank of Ayudhya), TMB and CIMB Thailand have all successfully passed out of the regulatory sandbox, so customers can open accounts with them from a mobile phone or ATM.
Since they began using the technology in February, when a slightly different list of banks was approved, 5 million accounts have been opened. The initial list also included Siam Commercial Bank.
The guidelines require specific policies, securing customer data, using accurate biometric technology, meeting international standards for data protection, educating users about the technology, and putting operational risk management and service continuity measures in place.
In the second phase of the program, the Bank of Thailand will allow cross-verification of customer identity between financial service providers.
Innov8tif Solutions COO Law Tien Soon says rising fraud rates among SMS one-time passwords make it clear that the most secure method of performing eKYC checks in Malaysia is with facial biometrics, in an interview with The Malaysia Reserve.
Law says that eight telecoms in the country are using Innov8tif eKYC, and the sector has been the first in the country to benefit from being able to remotely onboard customers around the clock. During the country’s lockdowns, mobile network operators offering eKYC saw online self-service registration of prepaid SIMs rise by 279 percent, comparing February and April of this year.
The company’s technology is also used by ewallets and money remittance services.
Law predicts that the technology will be similarly adopted for business-to-business agreements and business-to-consumer transactions, such as for property and insurance agreements.