eKYC – The next wave of Banking & Finance in ASEAN

Amid the wave of financial technology (Fintech), many financial firms in Southeast Asia have launched the new solution called electronic Know Your Customer (eKYC), with the aim to support financial and banking services. Vietnam also entered the race and stated to offer eKYC digital account opening. This is the first step in its roadmap to develop digital banking and increase the use of technology in banking and finance in the near future.

What is eKYC?

eKYC, or electronic Know Your Customer, is a remote and paperless process helping verify a customer’s identity, assess risks and detect frauds in online transactions, including account opening, logging, loan and payment registration. With eKYC, bank account opening and customer onboarding become much easier, as customers do not need to go to branches or wait for identity verification.

The booming of digital banks in Southeast Asia has created a new trend with massive breakthroughs in the field. In respond, traditional banks are expected to use advanced technology in business process to boost efficiency and, eventually, to survive in the fierce competition and changing market.

Digital bank in Thailand was praised for its eKYC solution

TMRW, a digital bank powered by United Overseas Bank (UOB), officially launched in Thailand. TMRW has been recognized by Thailand government for digital banking innovation. It is the first mobile-only bank in South-east Asia and offers authentication and bank account opening services via eKYC.

TMRW won the “Best Biometrics Initiative”, an award by The Asian Banker, for applying the eKYC process in business model, with biometric facial recognition authentication.

Yuttachai Teyarachakul, Managing Director and Country Head of Personal Financial Services, UOB (Thai), said, “TMRW rethinks traditional banking models to make banking simpler, smarter and safer for our customers, especially the young and the mobile-savvy.”

Philippines’ digital bank made a breakthrough with eKYC

CIMB Bank was first launched in Philippines in 2019. With the integration of Optical character recognition (OCR), Face recognition and high security standards in eKYC processes, CIMB Bank allows customers to open savings accounts and apply for first loan in just 10 minutes.

The power of eKYC and other digital technologies made CIMB Bank the fastest-growing digital bank in Southeast Asia. After a year of establishment, nearly 2 million Filipinos registered their accounts through the digital platform CIMB Bank PH, and 30% of that opened bank accounts for the first time.

Malaysia launched eToken – the new eKYC using face recognition

Hong Leong Bank (HLB) in Malaysia launched eToken with built-in biometric facial recognition authentication, providing secure and seamless transactions for small and medium enterprises (SMEs).

This new feature uses facial recognition to authenticate login and approve payments on Hong Leong Connect First, HLB’s online platform for business cash management. Yow Kwan Tuck, Managing Director at Hong Leong Bank said its main goals are to simplify business process and enhance customer experience.

Vietnam aims to offer digital account opening via eKYC

Vietnam has realized the potential of eKYC in financial and banking services. Previously, face-to-face meetings were required for opening bank accounts (customer onboarding). However, since the 4th industrial revolution occurred, there have been the massive advances of new technologies helping simplify business process and avoid security risks. Therefore, it is necessary to adjust regulations that are beneficial for both banks and customers. With technology solutions such as eKYC, the bank can expand its customer base and make it easier for customers to access banking services.

On November 14th, 2019, the Decree 87/2019/ND-CP amending Decree 116/2013/ND-CP was issued with regulation that banks can decide whether meeting face-to-face with customers or not to establish a relationship. In case of not meeting face-to-face with customers, there must be measures, forms and technologies to identify and verify customers. (According to Thi truong tai chinh tien te)

In the near future, the processes of account opening and customer onboarding in Vietnam will be performed completely online. eKYC will be a powerful and essential weapon for banking and financial institutions to “surf” the first “wave” of digital transformation and survive the game.

In Vietnam, FPT.AI currently provides the comprehensive eKYC solution for businesses, especially banking and financial institutions. FPT.AI aims to become the best provider of digital solutions and bring a great deal of benefits to partners. With FPT.AI eKYC, businesses can get such privileges as:

– Digitalizing customer onboarding

– Saving up to 80% time in account opening processes

– Standardizing input data and eliminating mistakes related to manually entered data

– Saving 60% of costs, compared to the traditional identity verification.

As for businesses with foresight, it is time to improve business processes and integrate digital solutions in order to keep pace with the changing world. In the global digital race, FPT.AI is always by the side of Vietnamese businesses, cooperates and promotes the national and regional digital economy.

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