From July 1, 2024, banks have implemented biometric authentication for certain types of online transactions according to Decision 2345/QD-NHNN by the State Bank. However, many users have encountered difficulties, and banks have faced obstacles in adopting this technology.
At the regular monthly Government press conference held this afternoon (July 6), Deputy Governor of the State Bank of Vietnam (SBV) Pham Tien Dung said that the primary purpose of Decision 2345/QD-NHNN is to clean up accounts due to the prevalence of fake IDs and multiple documents, which were previously used by fraudsters. Now, the SBV is working with the Ministry of Public Security to clean up accounts, and only transactions over VND10 million will require customers to undergo biometric verification. This will ensure that there are no more fake accounts.
According to the Deputy Governor, the biometric verification process is straightforward. It involves comparing the customer’s face with the database, and if there is a match, the transaction is approved. This additional step is unnecessary for transactions below VND10 million for essential goods.
“In June, transactions over VND10 million accounted for 8% of the total, averaging 1.8-2 million transactions per day,” said Mr. Dung.
Regarding the implementation of Decision 2345/QD-NHNN, the Deputy Governor said that currently, over 80% of adults have bank accounts, equivalent to 65 million people. The number of accounts is about 180 million, meaning that on average, each Vietnamese adult has about three bank accounts.
As of yesterday (July 5), banks have cleaned up and verified 19 million accounts using the new national ID cards with chips.
On July 1, there were some technical issues due to the high number of people accessing the system simultaneously. However, from July 2 to 5, the system operated smoothly.
“We have accurately verified 19 million accounts, with 10% of customers being directly assisted at the counter,” said Mr. Dung.
Deputy Governor Pham Tien Dung assured that any issues related to the implementation of biometrics in bank transactions would be addressed by the banking system – Photo: VGP/Nhat Bac
Regarding the reasons why some people had to go to the bank branches to register their biometric data, Mr. Dung explained that some customers did not have the new national ID cards with chips, only the old ID cards or other documents, which are not compatible with the new system. Additionally, some customers did not have NFC-enabled phones, so the banks assisted them in completing the process.
According to SBV statistics, yesterday’s transaction volume peaked at 26.3 million in the interbank electronic payment system, the highest in the last ten days. Of these, 8.35% were transactions over VND10 million.
To address the challenges faced during the implementation, the SBV has issued two guidance documents for situations where customers do not have the new national ID cards with chips. Most recently, Vietcombank announced that starting from the afternoon of July 1, customers no longer need NFC-enabled phones, as the VNeID platform is now integrated with the Vietcombank app.
Regarding data security, Mr. Dung assured that the Law on Credit Institutions stipulates the responsibility of banks in protecting customer information, and the Law on Cybersecurity also includes provisions on information protection. Banks must comply with all these regulations. Additionally, the SBV has issued a circular on ensuring the security, safety, and confidentiality of customer information.
With transactions over VND10 million, an additional step of biometric verification has been added to the existing processes to ensure the authenticity of the account holder. “I would like to emphasize that we have added a step to enhance security, and none of the previous steps have been removed,” said Mr. Dung.
When asked if this solution is completely safe, the Deputy Governor replied that there is no such thing as absolute safety, as criminals will always look for new loopholes. Therefore, banks must continuously issue warnings and educate customers about new scams. A survey conducted yesterday showed that 94% of respondents were aware of these issues through various media channels.
“In the future, our sector will focus on two main tasks: protecting the legitimate rights and interests of customers and ensuring information security,” said Mr. Dung.
The SBV has requested credit institutions to record all difficulties and problems faced by customers and take appropriate measures to address them. They are also required to continuously upgrade their mobile banking applications to counter new scams and ensure the safety and security of customers.
“I assure you that any issues brought to the attention of the banking system will be addressed. We will follow a step-by-step approach, taking steady and gradual steps to ensure the rights and interests of customers,” Mr. Dung emphasized.
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