Asian banks deploy biometrics and digital ID for security, additional services

As digital identity gains prominence in a financial industry beset by fraud, nations in Asia are enabling banks to lead on digital and mobile ID integration.

South Korean banks introduce digital ID to connect private, public sectors

Commercial banks in the Republic of Korea will introduce digital ID cards on their mobile apps within the year, according to a report in the Korea Times. The move will allow KB Kookmin Bank, NH NongHyup Bank and a consortium of Kakao and its banking arm, KakaoBank, to offer mobile ID that enables them to expand services to non-banking sectors.

The selections were made as part of the Ministry of the Interior and Safety’s push to enable private companies in South Korea to more easily provide services connected to the public sector. The four banks were selected based on the size of their customer base.

Beyond banking, financial institutions have begun offering services for shopping, ticketing and more on their apps. KB Kookmin Bank has launched a mobile passport application service. Woori Bank’s app offers pre-health check-up results for citizens entering boot camp to prepare for mandatory military service. And Shinhan Bank’s app takes reservations for entry to government-affiliated forests and gardens.

Anyone with a banking app holding a valid mobile ID will be able to use it for identity verification at polling stations, hospitals and other government offices and institutions.

Vietnam mandates facial recognition for large bank transfers

The State Bank of Việt Nam’s “Decision 2345” on methods to ensure secure online payments and bank card payments means that users transferring over VNĐ10 million (~US$390) online must now authenticate their identity through facial recognition.

According to a report from Viet Nam News, officials from the Ministry of Public Safety believe biometrics are the most advanced measure available for authenticating money transfer transactions. Speaking to Vietnamplus, Lieutenant Colonel Triệu Mạnh Tùng, deputy director of the Ministry’s Cybersecurity and High-Tech Crime Prevention Department, says that while there may be investments required to install the necessary biometric infrastructure, “it must be affirmed that using biometric authentication when transferring money is the most advanced measure available today.” He calls Vietnam “one of the pioneering countries in the world to implement such measures.

That said, the Lieutenant Colonel advises financial institutions and other organizations to remain agile in a quickly changing fraud environment. “There is still a risk that criminals could use deepfake technology to bypass biometric authentication,” he says. “Therefore, banks and relevant agencies must be ready with solutions and plans to respond.

Vietnam is in the midst of a major digital transformation campaign. According to VnEconomy, its 2024 national theme, “Digital Economy Development”, is underpinned by four pillars: “fostering the IT industry, digitalising all economic sectors, enabling digital governance and unlocking digital data as a powerful catalyst.”

Banking is a priority area, with statistics showing significant enthusiasm for digitization: mobile payment transaction volumes have increased by over 100 percent annually. This is driven in part by the development of robust online payment infrastructure. For instance, “customers can now authenticate seamlessly and securely using embedded biometrics in chip-based citizen ID cards, digital signatures, and the VNeID electronic identity platform.”

The country recently successfully completed biometric verification for over 13 million customers in just two days.

National digital ID improves efficiency, inclusion in Philippines

The Philippines’ new national digital ID system is expected to increase bank lending activities and promote financial inclusion, according to a piece in Malaya Business Insight. Banks can use the digital ID for customer onboarding and electronic Know Your Customer (e-KYC), to offer more efficient processes, less paperwork and enhanced security for financial transactions.

Asia United Bank (AUB) is among early adopters of the Digital National ID system to receive accreditation as a Relying Party from the Philippine Statistics Authority (PSA). AUB President Manuel A. Gomez says “this pioneering initiative supports AUB’s aspiration to become the Digital Partner of Choice, advocating for open collaboration and helping others share in our success and responsibility to deliver financial inclusion.”

Article Topics

Asia  |  banking  |  biometrics  |  digital identity  |  national ID  |  Philippines  |  South Korea  |  Vietnam