Revolutionizing the Banking Experience: VietinBank’s Synchronized Approach to Customer Satisfaction

Fostering Biometric Authentication in line with Decision 2345

In alignment with the Prime Minister’s Directive 06, “Developing Applications of Population Data, Electronic Identification and Authentication to Serve National Digital Transformation for the period of 2022 – 2025, with a vision towards 2030,” the State Bank of Vietnam has issued Decision 2345/QD-NHNN. Starting from July 1, 2024, customers of banks will be required to authenticate certain online transactions using facial biometric data that matches the information stored in the chip of their citizen identification cards (CCCD). This authentication method ensures secure transactions for customers, preventing fraud and protecting their assets.

As a leading state-owned commercial bank and a pillar of the economy, VietinBank has been at the forefront, dedicating significant resources to implementing solutions for collecting and cleansing customer data, thereby minimizing the risk of online fraud. As early as 2020, VietinBank invested in biometric technology solutions. Consequently, when Decision 2345 was issued, VietinBank was among the first institutions to complete the implementation of a solution connecting to the National Population Database for customer biometric authentication. VietinBank has proactively established the necessary technological infrastructure and biometric authentication solutions, ensuring a seamless authentication process for its customers.

Decision 2345 mandates biometric authentication for online transactions.

The implementation of biometric authentication has enabled VietinBank to gradually cleanse customer data, minimizing account rentals, loans, and fraud. It allows individuals to conduct online transactions with enhanced security and privacy. As of now, VietinBank has successfully authenticated over 5 million customers, with an impressive growth in the volume of digital transactions, reaching tens of millions of biometric-authenticated transactions each month. This number is expected to continue rising in the future.

Commenting on the implementation of biometric authentication, Mr. Tran Cong Quynh Lan, Deputy General Director of VietinBank, stated that it marks a significant step forward, bringing numerous benefits to both customers and the banking industry as a whole. “We have successfully cleansed our account system, enhanced security and protection for our customers, while ensuring seamless transactions. Moreover, the transaction volume has increased, and people feel more confident about transferring money through the banking system,” emphasized Mr. Lan.

From a customer’s perspective, Ms. Pham Hoang Hanh, a long-term customer of VietinBank, shared her experience: “As a long-term customer of VietinBank, I have found the biometric authentication process extremely convenient and reassuring when conducting financial transactions. I feel comfortable and secure keeping my money in my account, without worrying about hacker attacks or theft.”

In reality, since the banking industry, including VietinBank, actively promoted the collection and authentication of biometric data, the number of online fraud cases has significantly decreased. Data from the State Bank of Vietnam indicates a notable reduction in the number of fraud cases resulting in financial loss for customers and the number of accounts involved in receiving fraudulent funds in several institutions. Specifically, the number of customers who fell victim to fraud in August 2024 decreased by approximately 50% compared to the average of the first seven months of 2024. Additionally, the number of accounts receiving fraudulent funds in August 2024 decreased by about 72% compared to the average of the first seven months of 2024.

Aiming for Comprehensive Customer Identification

To actively implement Directive 06/QD-TTG of the Prime Minister and the Coordination Plan No. 01/KHPH-BCA-NHNNVN between the Ministry of Public Security and the State Bank of Vietnam, as well as to prepare for the effectiveness of Circulars 17 and 18 of the State Bank of Vietnam, in the coming time, VietinBank will continue to promote the application of population data, cleanse data to ensure that 100% of individual customers at VietinBank are cross-referenced with biometric information in the chip-embedded CCCD or through the VneID application. Along with this, VietinBank will promote the use of the National Population Database in assessing the credibility of loan customers, contributing to the eradication of black credit. “From now until the end of the year, VietinBank will continue to communicate and support customers in identifying their accounts so that we can cleanse all accounts and be ready by the beginning of 2025. We aim for all customers to have identified accounts and be able to conduct online transactions,” shared Mr. Tran Cong Quynh Lan, Deputy General Director of VietinBank.

Customers experiencing VietinBank’s digital banking services.

With its operating philosophy of “customer centricity,” VietinBank not only focuses on biometric authentication to prevent fraud and protect customers during online transactions but also continuously develops and deploys modern products and services with high technology content. This approach brings convenience and enhances the experience for customers.

As of the end of the third quarter of 2024, VietinBank iPay Mobile application for individual customers continues to attract more than 8.6 million users, an increase of 17.2% compared to the same period in 2023; achieving 1.377 million transactions, an increase of over 75.6% compared to the same period in 2023. The transaction ratio through the iPay channel accounts for more than 92% of the total transactions of individual customers.