eKYC is a new product, soon to make its debut into the market from not only FPT, but also many other businesses, attracting special attention from the finance – banking industry. This new process is more optimized than currently employed KYC procedures, saves human resources, brings better customer experience, as well as reduces costs for businesses.

KYC – Know Your Customer is a procedure where business identify their customers and evaluate their suitability as well as potential risks that may occur from possible business relationships. This is also a required procedure at credit organizations, particularly when opening bank accounts. To simplify procedures and documents and make it easier for customers, many banks around the world had caught up with the flow of technology to get authorized to use eKYC technology, also known as Electronic Customer Identification.

This is also one product that FPT Technology Innovation Center are researching and developing. eKYC utilizes modern technology likes AI and Deep Learning to identify users via ID cards and driving licenses, thus improves accuracy and reliability of identification.

According to Dr. Dang Hoang Vu, who prepared a speech at FPT TechDay 2019, this procedure is more advantageous compares to current KYC procedures in:

  • Helping to reduce human resources, and along with it human errors and ethical risks.
  • Solving customers’ problems quickly and neatly, as well as providing better service.
  • Tackling all inquiries immediately, 24/7, without waiting time.

Applied technologies

In his speech, Dr. Dang Hoang Vu had focused on some technology applications in the online customer identification procedure that FPT, along with other Vietnamese and international businesses, are aiming for. According to him, these technologies are by no means too great and faraway, but rather something that may be in use any time in the near future. These include:

OCR (Optical Character Recognition): this particular technology had been founded quite long ago, but have been further improved in speech and accuracy.

Face matching: this is a vital technology in identification

Head-movement detection: this technology efficiently differentiate between real human and photos

Doctored images detection: this technology helps to detect alterations in documents.

Liveness detection: this technology helps to detect real people, differentiate between real people and photos/videos, as well as detect fake fingerprints…

Online customer identification procedure

Above is a virtual customer experience when using the service

Step 1: Customer visits websites/install mobile app. The aim of eKYC is to enable businesses to serve customers at all places and time, therefore, mobile app is the best means for the task.

Step 2: Customer accesses to eKYC. At this stage, nothing is yet automatic, after gaining access, customer may face with an employee on the other line to tackle their case.

Step 3: Semi-automated customer identification via taking ID document photo, or ask the customer to take a selfie or read a script. From these, computers will store the customer ‘s information in its database to perform future identification. In this stage, some frauds may be detected, but there remains security holes. Should the business stop here, they will still need a lot of staff for revision.

Step 4: Fully-automated eKYC, with technologies like voice biometrics, identification via light reflection on the face, image focal distance focus… to improve accuracy and reliability. Dr. Dang Hoang Vu also highlighted the importance of legal and reliable databases.

OCR & Face detection is one technology owned and provided to customers by FPT.
Face verification technology to compare 2 faces in the same pose. Above is a diagram of the Deep Learning model used in tackling this problem.

It is apparent that eKYC had been applied in Vietnam, and will only grow more popular along with the development of more accurate and reliable technologies.

Currently in Vietnam, according to the amended Decree No. 87/2019/ND-CP, which adds to Decree No. 116/2013/ND-CP detailing Law on prevention and combat of money laundering, there is a new important regulation on e-KYC, where it is stated that banks are allowed to decide on whether to approve or reject face-to-face meetings with first-time customers during transaction. Particularly, Number 2, Article 8 of the Decree states as below:

“a) Directly facing clients upon setting up relationship at the first time and requesting clients for providing information as prescribed in Article 4 of this Decree”

To view the speech of Dr. Dang Hoang Vu and download materials, please click HERE.

Phuong Thao

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