{"id":7342,"date":"2020-06-19T10:58:09","date_gmt":"2020-06-19T10:58:09","guid":{"rendered":"https:\/\/innotech-vn.com\/?p=7342"},"modified":"2021-03-26T04:05:52","modified_gmt":"2021-03-26T04:05:52","slug":"ekyc-digital-identity-verification-banking-challenges","status":"publish","type":"post","link":"https:\/\/innotech-vn.com\/vie\/ekyc-digital-identity-verification-banking-challenges\/","title":{"rendered":"eKYC – Digital Identity Verification – Banking Challenges"},"content":{"rendered":"
eKYC<\/a> – digital identity verification <\/a><\/b>is a top searching keyword for banking institutions in Vietnam when the information from the State Bank of Vietnam about the draft allows the operation of opening bank accounts for cashless in May 2020. Let’s be with <\/span>Innotech Vietnam<\/b><\/a> to dissect the challenges for the bank if deploying eKYC:<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n The fact is easy to find and refers to the processes of opening digital accounts from foreign banks that have been deployed. However, it is not easy for technology managers or product managers at those banks to know how to integrate those technologies into their own existing banking systems with the lowest risk and highest security. In addition, eKYC is not only deployed for the onboard process but also for the process of registering subsequent product and service packages at the bank. So, how can build the process and structure of the banking system operating smoothly and automatically? The banks can solve the problem when they own a team knowledgeable in both business and technology.<\/span><\/p>\n <\/p>\n <\/p>\n The organization will be put under more pressure if it does not have a technology-savvy team for eKYC application<\/strong><\/a>. It leads to a waste of resources in the process of investing in the development of the solution and huge losses. Especially, bad customer experience makes the brand’s reputation worse.<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n The draft for banks to open digital payment accounts for customers has just been boosted in May 2020, so very few banks in Vietnam promptly implement eKYC in banks<\/strong><\/a>. Therefore, this is not only an opportunity for banks but also a challenge if they take advantage of the market pioneer. It is difficult to anticipate operational risks in the Vietnam market because of lack of information.<\/span><\/p>\n <\/p>\n <\/p>\n In Vietnam, banks have the following criteria to choose partners:<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n When converting from a traditional process to a fully automated process, banks will have to face personnel restructuring and staff upgrading. This conversion process can radically change the organization’s culture, requiring the company’s access to technology to respond promptly and comprehensively. Let’s prepare for these changes.<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Particularly for the banking industry, they always concern about the confidentiality of customers’ information, system security to prevent hackers and financial criminals from entering. If they want to convert numbers, it requires banks to invest in the store of information and data of customers with a large number of users. However, the number of infrastructure investments is quite expensive.<\/span><\/p>\n <\/p>\n The need to open a digital bank account is indisputable. However, the State Bank in Vietnam has not had specific provisions on <\/span>digital identity verification <\/b><\/a>by EKYC and especially the regulation on E-signatures, which makes banks currently as “Every tub must stand on its own bottom” on the road to developing the eKYC solution. The risk is that banks have started programming in <\/span>c\u00e1c eKYC process<\/b><\/a> that can be “start over ” to conform to the State Bank’s regulations.<\/span><\/p>\n <\/p>\n Understanding the challenges that the banking organizations will face when applying eKYC will help managers to better research and prepare in the process of implementing digital transformation solutions.<\/span><\/p>\n <\/p>\n1. Confused during learning about eKYC and the process of opening a digital banking account<\/b><\/h2>\n
Opening an online bank account helps improve the customer experience<\/em><\/p>\n
2. Internal staff lack knowledge of new technologies and platforms<\/strong><\/h2>\n
3. Very few cases study on eKYC for banks in Vietnam to research and optimize<\/b><\/h2>\n
In Vietnam, there are very few eKYC case studies for banks to research and optimize<\/em><\/p>\n
4. Difficult to find and choose reputable partners to deploy Digital Identity Verification<\/b><\/h2>\n
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5. Reengineering internal processes to accommodate new technology operations<\/b><\/h2>\n
6. Building infrastructure conversion and storage systems are quite expensive<\/b><\/h2>\n
The cost of investing in data storages facility will be very expensive<\/em><\/p>\n
7. It is not possible to predict the time “official” is allowed to apply eKYC – Digital Identity Verification<\/b><\/h2>\n