Vietnam’s Bank Biometrics Requirement Faces Bumpy Rollout

Vietnam’s new biometric verification requirement for banking is rolling out with a few hiccups, according to local reports.

Since July 1, bank customers have been mandated to register their biometric data to enhance cybersecurity. The requirement applies to all online transfers of VND10 million (about $393) or more and lower amounts if a customer has already transferred VND20 million that day. The registration process involves scanning their face or fingerprint and linking their ID card to their smartphone through near-field communication.

Many customers have reported difficulties completing transactions despite having registered their biometric data. Nguyen Huu Thuong, a Vietcombank customer in Ho Chi Minh City, encountered repeated error messages when attempting a VND10 million transfer. Similar issues were reported by customers of other banks, including Orient Commercial Bank and TPBank, with some transactions being blocked due to system upgrades or high volumes of verification attempts.

The State Bank of Vietnam has asserted that only a small number of customers experienced problems. However, many customers were unable to register their biometric data on their apps, prompting them to visit bank branches in person. The in-person process, while effective, has led to long wait times and crowded bank branches. Some customers, like Hung, reported that it took around 10 minutes for bank staff to complete the registration process that they could not achieve on their own.

The rollout has also led to new security concerns. Vietcombank warned about fraudsters impersonating bank employees to exploit the new biometric requirements. Fraudsters contact customers through calls, texts, and social media, pretending to assist with biometric updates to steal banking details. Vietcombank advised customers to avoid sharing personal information or clicking on unfamiliar links and recommended visiting bank branches for assistance with biometric registration issues.

While there has been expert consensus on the added security of biometric identity verification in the financial services sector, the issues with Vietnam’s rollout demonstrate the importance of execution, especially on relatively short timelines.

Sources: VNS, VnExpress

–

July 3, 2024 – by Cass Kennedy