To build trust in biometrics, Vietnam banks should adopt FIDO passkeys: report

VinCSS has released an industry first report on the authentication experience in apps for Vietnamese banks, and it shows a “strong shift from traditional to modern authentication methods” in the country’s banking ecosystem.

Biometrics rank as the most commonly used authentication methods for high risk transactions. It’s also rated as the most convenient, with 58.3 respondents listing it as such.

As usual, there are corresponding concerns about data privacy. One in three people worry their biometric data or digital credentials could be stolen or faked, leading to identity fraud. One in Authentication data theft is a top fear. “Many users feel that biometric authentication, though widely implemented, still is not secure enough for them or their digital assets.”

But VinCSS believes the security fears are founded in contexts that do not apply to today’s online transactions. Specifically, it distinguishes between biometrics as a form of standalone authentication, which often involves storing biometric templates, and biometrics as a supplementary measure – as in passkeys, for which they unlock a further authentication mechanism.

The report’s overarching recommendation is to adopt FIDO passkeys. According to the numbers, passkeys and digital signatures are not yet widely used by Vietnam’s banks. But the report says their appearance in the dataset is “a promising signal” that indicates potential for future growth. And it is clear in declaring that “combining biometrics with passwordless authentication via FIDO 2 is currently the optimal approach.”

In the context of passkeys, in which biometrics are used to locally unlock a private key stored on a user’s device to provide an additional layer of authentication, “biometrics transform from a potential vulnerability into an enhanced, convenient, powerful and private layer of protection for the end user.”

Other findings in the report note that user experience is an issue, with one in six users saying biometric scanning tools on banking apps are “not smooth.” Digital banks tend to score low for customer satisfaction. But that will have to change, as Gen Alpha’s digital-first preferences shape the ecosystem.

The report concludes with the acknowledgment that authentication is now “the core of user experience and digital trust,” which “must be a top priority for every bank moving forward.”

Bank accounts flushed, airports make biometrics mandatory

All signs suggest Vietnam will have to get used to biometrics and stronger digital authentication. The country has been working to tighten its digital payment regulations, and, according to VietnamNet, to “actively strengthen legal and institutional frameworks to support the development of cashless payments.” Part of this is purging the country of unverifiable bank accounts; as of June, it had pledged to close 86 million inactive bank accounts by September.

Moreover, starting December 1, biometric check-in will be mandatory at all airports across Vietnam, with exceptions for passengers with checked luggage and special assistance needs. The government promises “full-process biometric authentication using the VNeID platform at 100 percent of the nation’s airports by the end of October,” and the same for Hanoi’s railway station, and vehicle parking lots in Hanoi and Ho Chi Minh City.

Article Topics

biometric authentication  |  biometrics  |  FIDO Alliance  |  FIDO2  |  multifactor authentication  |  passkeys  |  Vietnam  |  VinCSS  |  VNeID