Challenges that Vietnamese banks face in the process of implementing eKYC solutions for onboarding. Now, let’s analyze this in more detail!
eKYC – digital identity verification 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 Innotech Vietnam to dissect the challenges for the bank if deploying eKYC:
Opening an online bank account helps improve the customer experience
The fact is easy to find and refer 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 problem can only be solved when the bank owns a team knowledgeable in both business and technology.
The organization will be put under more pressure if it does not have a technology-savvy team for eKYC application. 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.
In Vietnam, there are very few eKYC case studies for banks to research and optimize
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. Therefore, this is not only an opportunity for banks if they take advantage of the market pioneer, but also a challenge because it is difficult to anticipate operational risks in the Vietnam market because of most of as no information.
In Vietnam, banks have the following criteria to choose partners:
When converting from a traditional process to 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. Be prepared for these changes.
The cost of investing in data storages facility will be very expensive
Particularly for the banking industry, they always concern about the confidentiality of customers’ information, system security to prevent hackers and financial criminals from entering, so 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 and the number of infrastructure investments is quite expensive.
The need to open a digital bank account is indisputable. However, the State Bank in Vietnam has not had specific provisions on digital identity verification 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 the eKYC process that can be “start over ” to conform to the State Bank’s regulations.
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.
If you are looking for a reputable and reliable partner to accompany eKYC solutions, Innotech Vietnam is an accurate choice for the following reasons:
Innotechvietnam’s eKYC solution in digital onboarding for banks
Please leave your information immediately if you are in need of advice on eKYC solutions!
Innotech Vietnam always strives to meet the needs of customers with the highest quality products and services. So we have received the trust from big companies such as ACB, Tyme Bank, Unifimoney, Manulife, Commonwealth Bank, … to use products created by Innotech Vietnam.
If you are looking for eKYC solution provider in Vietnam for your company. Contact experts at Innotech Vietnam for any questions about EKYC Solutions Provider in Vietnam!