The move to biometric authentication was prompted by increasing concerns about fraud in financial institutions
Vietnam is witnessing the benefits of biometric authentication in its banking sector as part of the country’s ongoing digital transformation efforts. Recent reports indicate that the introduction of biometric verification has led to a remarkable 72 percent decrease in fraudulent bank accounts.
During a press conference announcing the Vietnam Card Day 2024 event, Pham Anh Tuan, director of the payment department at the State Bank of Vietnam, shared that as of mid-September 2024, biometric data had been collected for around 38 million bank accounts, which includes nearly 4 million e-wallets. This initiative is part of a government-led strategy to enhance digital security and address rising identity-related crimes in the region.
The move to biometric authentication was prompted by increasing concerns about fraud in financial institutions. The State Bank of Vietnam has mandated that banks implement these verification methods to secure online banking transactions.
Following the implementation of this system, the average daily number of transactions has stabilized at over 25 million. According to Tuan, this figure is similar to the average number of transactions recorded before July 1, 2024.
The rollout of biometric authentication began in July when over 13 million citizens enrolled in the system within just two days of the digital identity law’s passage, which took effect on July 1, 2024. This law requires the use of biometrics in digital transactions.
Biometric authentication has become essential for various activities, including opening bank accounts, receiving government benefits, and registering for mobile services. Starting January 1, 2025, individual customers whose biometric information has not been collected by credit institutions and payment intermediaries will only be able to conduct money transfers in person at bank transaction counters. Additionally, the Vietnamese government is working to expand its identity card program to include children and individuals under the age of 14.
This comprehensive approach to enhancing security aims to foster trust and reliability in Vietnam’s rapidly evolving digital financial landscape.
