Vietnamese banks complete biometric validation of 120M customer records

Vietnamese banks have completed biometric validation and updated all customer records with payment accounts using digital channels, including more than 120.9 million individual customer records and over 1.2 million organizational accounts. The records were updated using biometric data from chip-based ID cards and the VNeID digital ID platform, the State Bank of Vietnam (SBV) announced this week.

The operation was kicked off to standardize customer information and curb fraud. The Southeast Asian country has been rapidly expanding its digital economy, but its growth has also led to a surge in scams and identity threats.

As of July 2024, Vietnamese banks must use biometric authentication for money transfers exceeding 10 million Vietnamese dongs (US$380.6) or a total daily value over 20 million Vietnamese dongs ($761.3). Since the introduction of the rule, fraud and theft cases involving individuals have dropped by 59 percent, while accounts receiving illicit funds have fallen by 52 percent, according to the SVP.

Starting from July 1st this year, legal representatives of corporate bank customers also must complete biometric and ID document verification to withdraw funds or conduct electronic transactions.

To ease the process, credit institutions and payment intermediaries have been introducing biometric matching in banking apps, allowing ID verification at transaction counters and including VNeID authentication in account management. Banks are also connecting their system to the National Public Service Portal and other sectors, Vietnam Plus reports.

The efforts are part of the government’s Project 06 plan to modernize its economy and public services. A key segment of the project is modernizing the national ID system with the help of companies such as NEC and expanding the VNeID digital identity app.

Article Topics

biometric authentication  |  biometrics  |  financial services  |  identity verification  |  Project 06  |  Vietnam  |  VNeID