Vietnam ramps up digital transformation but users report snags in biometric updates

As citizens of Vietnam stare down the July 1 implementation of mandatory biometric verification for new mobile banking users and large transactions, users have reported difficulties updating their data, according to a report from Vietnam News.

“Customers have been told to update their facial images and chip-based ID cards by July 1 to avoid disruptions in high-value online transactions,” says the report. Yet users complain of errors, incompatibility of chip-based ID cards with smartphones that don’t have NFC readers, and fears about biometric data being leaked or hacked in data theft scams.

Response from the government has been to note that customers can update data through the banking app or by visiting physical bank branches with their chip-based ID cards for in-person verification using NFC readers.

Phạm Anh Tuấn, director of the Payment Department at the State Bank of Vietnam, says that 60 financial institutions have implemented customer verification using chip-based ID cards at branches, 49 institutions via mobile apps and 22 institutions with the VNeID electronic identification application.

Vietnam’s prime minister, Phạm Minh Chính, has been an active advocate for digital identity and larger digital transformation initiatives. And the banking industry has been keen to join the chorus. Key stakeholders in the banking sector have committed to spearheading the government’s digital transformation agenda, by developing robust digital infrastructure and enhanced digital security tools.

Vietnam’s government-owned biometric authentication platform VNPT now processes an average of 600,000 KYC check requests per day. VNPT claims its face biometrics algorithms are up to 99.99 percent accurate.

In February 2024, it added facial recognition for online immigration to its digital transformation plan.

Article Topics

banking  |  biometric authentication  |  digital identity  |  mobile banking  |  mobile biometrics  |  Vietnam