Know Your Customer (KYC) Best Practices in Vietnam: A Game-Changer for Commercial Banks?
Introduction
In 2021, electronic Know Your Customer (e-KYC) emerged as a key milestone in digitalizing the banking industry in Vietnam. Since then, e-KYC has proven its value in enhancing customer experience and optimizing commercial bank activities.
Reality and Challenges in Implementing e-KYC in Vietnam’s Banking Industry
Since the State Bank of Vietnam allowed pilot e-KYC implementation in July 2020, commercial banks in Vietnam have witnessed a surge in new customers and online transactions. Pioneer VPBank has successfully developed an e-KYC solution with biometrics technology, e-signature, and artificial intelligence (AI), allowing customers to open accounts entirely online within five minutes. Other banks such as HD Bank and TP Bank have also achieved impressive results.
However, e-KYC adoption in Vietnam has faced challenges, including:
- Daily transaction limits
- Security concerns related to deep fake forgery issues
Benefits and Opportunities of e-KYC for Commercial Banks
The implementation of e-KYC has brought about a significant disruption in the finance-banking sector. So, how does e-KYC technology help businesses gain competitive advantages? Two main benefits of this solution are:
- eKYC shortens verification processing time, enhancing customer experience:
- Traditional KYC procedures require customers to visit transaction offices, filling forms and providing identity documents.
- In contrast, e-KYC allows customers to complete these steps anytime, anywhere with a smartphone connected to the internet.
- eKYC optimizes banking operations:
- Not only does it bring satisfaction to customers but e-KYC also supports banks in optimizing their activities.
- The process has high security, reduces errors in data entry, and detects fake documents better than traditional methods.
FPT. AI eKYC: The Best eKYC Solution for Banking in Vietnam
FPT.AI eKYC is equipped with state-of-the-art technologies such as:
- OCR technology
- Fraud check technology
- Facematch technology
- Liveness detection technology
This solution offers high security, easy integration into available systems, and stable operation, making it the best e-KYC solution in Vietnam.
Conclusion
Despite challenges, the potential of e-KYC adoption in financial organizations is promising. By combining advanced technologies and continuously improving features, FPT.AI confidently provides the best eKYC solution for commercial banks in Vietnam, accompanying their development in the digital era.