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As digital identity becomes increasingly important in a financial industry grappling with fraud, Asian countries are empowering banks to spearhead the integration of digital and mobile ID systems.
South Korean Banks Introduce Digital IDs to Bridge Private and Public Sectors
Commercial banks in South Korea are set to launch digital ID cards on their mobile apps this year, as reported by the Korea Times. This initiative will enable KB Kookmin Bank, NH NongHyup Bank, and a consortium of Kakao and KakaoBank to offer mobile IDs, allowing them to expand services beyond traditional banking.
This development is part of the Ministry of the Interior and Safety’s effort to facilitate private companies in South Korea to seamlessly offer services connected to the public sector. The selected banks were chosen based on the size of their customer base.
In addition to banking, financial institutions are providing services such as shopping, ticketing, and more through their apps. For instance, 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 for mandatory military service, and Shinhan Bank’s app enables reservations for entry to government-affiliated forests and gardens.
Individuals with a valid mobile ID on their banking app 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 Vietnam’s “Decision 2345” requires users transferring over VNĐ10 million (~US$390) online to authenticate their identity through facial recognition. This move aims to enhance the security of online and bank card payments.
Officials from the Ministry of Public Safety endorse biometrics as the most advanced method for authenticating money transfer transactions. Lieutenant Colonel Triệu Mạnh Tùng of the Ministry’s Cybersecurity and High-Tech Crime Prevention Department acknowledges the need for investment in biometric infrastructure but asserts that biometric authentication is the best available measure. He also cautions that financial institutions must remain vigilant against potential fraud techniques, such as deepfake technology.
Vietnam is undergoing a significant digital transformation, with the 2024 national theme “Digital Economy Development” focusing on fostering the IT industry, digitalizing economic sectors, enabling digital governance, and leveraging digital data. The banking sector is a priority, with mobile payment transaction volumes doubling annually. The country has also successfully completed biometric verification for over 13 million customers in just two days.
National Digital ID Boosts Efficiency and Inclusion in the Philippines
The Philippines’ new national digital ID system is anticipated to enhance bank lending activities and promote financial inclusion, as reported by Malaya Business Insight. The digital ID enables banks to streamline customer onboarding and electronic Know Your Customer (e-KYC) processes, reducing paperwork and enhancing transaction security.
Asia United Bank (AUB) is an early adopter of the Digital National ID system, having received accreditation as a Relying Party from the Philippine Statistics Authority (PSA). AUB President Manuel A. Gomez highlights that this initiative aligns with AUB’s goal to become the Digital Partner of Choice, advocating for open collaboration and promoting financial inclusion.
Through these initiatives, Asian countries are not only enhancing security but also broadening the scope of services that financial institutions can offer, thereby fostering a more inclusive and efficient digital economy.
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