[Thoi bao Ngan hang] Strengthening the application of demographic data in banking activities

Speaking at the opening of the discussion, Deputy Governor of the State Bank of Vietnam Pham Tien Dung said that recently, in order to implement Decision No. 06/QD-TTg dated January 6, 2022 of the Prime Minister approving the Application Development Project, Using population data, identification and electronic authentication to serve the national digital transformation period 2022 - 2025, with a vision to 2030 (Project 06), the State Bank of Vietnam has issued a plan for the banking sector to deploy Deploy Project 06, and at the same time, agree to sign Plan No. 01/KHPH-BCA-NHNN dated April 24, 2023 with the Ministry of Public Security on coordinating the implementation of tasks in Project 06 in the banking industry.

According to the Deputy Governor, the Government's Project 06 allows banking units to utilize the national population database, information on citizen identity cards, pick up chips, and use them. The Ministry of Public Security's electronic identity account (VNeID) is very important for the application banking industry to deploy and provide digital banking services in the network environment, accurately authenticate customers, and prevent crimes such as document fraud, opening/using impersonated accounts, or deceiving customers to gain access to digital banking services.

The State Bank of Vietnam currently allows credit institutions to open accounts remotely using e-KYC, most recently Circular No. 06/2023/TT-NHNN allowing electronic lending with a limit of 100 million VND, it can be seen that three main banking activities: deposits, loans, and payments are all allowed to be carried out in an electronic environment.

As a result, the Deputy Governor stressed the need of client authentication in the next years. Data from the national population database will be a valuable source of information for credit institutions to verify customers' identities and search up information to estimate debt repayment capabilities, enabling faster lending procedures and contributing to the reduction of black credit.

Sharing the results of implementing Project 06 of the banking industry recently, Mr. Le Hoang Chinh Quang, Deputy Director of the Information Technology Department, State Bank of Vietnam, said that the Vietnam National Credit Information Center (CIC) and C06 – The Ministry of Public Security has agreed on an offline connection plan to clean up 54 million customer records in CIC's data warehouse and an online plan via API to clean up monthly customer records. CIC has coordinated with C06 to carry out 04 reviews and complete data comparison of 42/54 million customer records.
Currently, many credit institutions are coordinating with the Ministry of Public Security to expand customer authentication solutions through citizen identification cards with chips and deploy customer authentication solution through VNeID application in opening accounts and using e-banking services.

In particular, 40 financial institutions have implemented the use of chip-embedded citizen identity cards. Ten credit institutions have contacted C06 to deploy the use of electronic identification and authentication accounts (VNeID). Cleaning client data while creating payment accounts at credit institutions has been implemented by 27 credit institutions.

However, Mr. Quang stated that there are still certain problems and impediments in the process of executing Project 06 at this time. Technical solutions to connect and exploit the national population database, electronic identification and authentication account (VNeID), a chip-embedded citizen identification card, have primarily just completed testing and are now providing services through a number of organizations and businesses approved by the Ministry of Public Security (C06). Many credit institutions have not been addressed or thoroughly directed on implementation methods, procedures, and technology solutions.

As one of the first units authorized by the National Population Data Center C06, Ministry of Public Security, allowing connection to the national population database system, and providing products, Chip-embedded citizen identification authentication service, Mr. Dang Thanh Tuan, Deputy General Director of Epay Company, said that Epay is currently providing a full set of solutions to support banks in applying population data to Electronic identification and authentication.

For example, a solution to authenticate and identify customers at the transaction counter using specialized equipment certified by the Ministry of Public Security; or a solution to authenticate and identify online customers using the end customer's mobile device to conduct electronic banking and digital banking transactions. These solutions, according to EPAY representatives, will save time validating client information and reduce the possibility of papers being duplicated, changed, and forged for the bank.