In today’s life, eKYC is regarded as a modern identification method, extensively adopted and employed by many organizations and businesses, demonstrating its significance in the modern era, particularly as our country undergoes a comprehensive digital transformation.

What is electronic identification technology (eKYC)?

According to EFY Vietnam Information Technology Joint Stock Company, eKYC (electronic Know Your Customer) is known as electronic identification. This is a method of identifying customers through electronic accounts. This technology enables organizations to locate customer identity by using AI technology instead of paper.

When utilizing this method, it is not necessary for customers to come to the place or prepare complicated documentation; they may supply their own images and information only with a computer or phone having an internet connection. This electronic identification technology will automatically verify and identify customer information.

It can be said that eKYC is widely used in many sectors, including healthcare, public services, telecommunications, tourism, banking in the current 4.0 technology era. Correspondingly, this is also a solution for reducing verification time, saving time and money, and improving operational efficiency in the aforementioned areas. This identifying method is considered to be more productive than traditional ones.

KYC to eKYC: an inevitable trend of the digital era

eKYC electronic identification technology is an alternative to traditional KYC, instead of having to complete laborious manual tasks, today an advanced technological platform has been utilized to conduct identity verification by checking and comparing personal information with a centralized database. As a result, when customers participate in transactions and payments, administrative procedures are simplified, time is saved, and customers are more comfortable.

At the present, this might be regarded as a new trend in the digital era, when the digital economy becomes more prominent. In Vietnam, eKYC is becoming increasingly crucial as a foundation service for the national development of cashless and digital banking models.

Technologies applied in eKYC solution

Developers have applied cutting-edge technology to deliver exceptional capabilities to eKYC, contributing to the construction of eKYC’s prominent benefits and giving customers optimal experiences. As follows:

OCR technology (Optical Character Recognition)

OCR is an optical character recognition technique that is widely used in the field of optical character recognition. It is regarded as an advanced solution for scanning and recognizing characters using the optical approach. Handwriting, characters, or typed letters are recognized with up to 98% accuracy. OCR is stated to be a handy solution that is widely used on the market nowadays because of its excellent features.

Face matching

Face matching technology is equipped with deep learning to analyze and evaluate the match rate of portrait images, and videos with images on identification documents to verify the owner. This technology works by comparing two photos (one document photo and one portrait) using a simple process that can be performed directly within the app.

Liveness detection

Liveness Detection is a technological barrier that aids in the prevention of fraudulent photographs of professional papers, hence increasing security to level 2. This technology will identify in real time that it is the customer, not a robot or an impostor, thereby preventing the theft of user information. Furthermore, Liveness detection enables users to interact with authentication systems by taking/recording photographs or videos with a webcam, smartphone, or tablet camera.

Benefits of eKYC for comprehensive digital transformation

Today, eKYC is gradually proving its importance as a result of its advantages in preserving client information and avoiding situations in which staff conspire with consumers to create fake identities. This is the perfect solution for governments, businesses, the financial and banking industry when applied to the operating system based on the following potential benefits:

For the government

Currently, eKYC is one of the technologies that meet the government’s requirements in personal information digitization services, helping to promote online public services that are always operated continuously to serve the people. Moreover, electronic identification through eKYC helps to reduce errors in the verification step and prevent counterfeiting of documents. This application continuously assesses and monitors risk, allowing permanent online storage of all records and data. As a result, abuse, illicit gain, or unlawful activities can be tracked down fast.

Accordingly, on July 18, Vietnam first launched a citizen management application on a digital platform, activated with a VNEID identity account. This electronic identification application has been officially put into use by the Ministry of Public Security to support the declaration of domestic movement and population movement and receive QR codes for faster travel when going through the quarantine checkpoint. In addition, VNEID also has the ability to connect to the National Population Database to ensure the accuracy of citizen information.

For the financial and banking industry

The use of electronic identification (eKYC) is the key to implementing online identification and verifying customer information through digital banking applications for all traditional banking activities, including processes for customer identification. It can be claimed that eKYC has contributed to meeting the digitization criteria of banking services and is applied the same as a miniature bank branch on the phone. In Vietnam, BIDV is a pioneer in the digital transformation process, having integrated the online account opening feature by eKYC with the launch of the new generation BIDV SmartBanking service, bringing a whole new experience to customers. Not only does eKYC digitize the customer identification process, but it also assists the bank in developing a uniform customer information database by digitizing and storing it in a common data warehouse to avoid information duplication generated by a single customer registering at many branches.

For businesses

The digitization of the customer identification procedure also enables organizations and businesses to reach out to clients who live in faraway locations. Identification may now be performed at any time and from any location, eliminating the need for support personnel. This helps organizations expand their customer base, increase customer base, and increase revenue. Simultaneously, the use of eKYC assists businesses and government organizations in lowering labor expenses and increasing staff productivity.

Nowadays, eKYC is gradually being implemented in hotel and airport check-in systems to make hotel and airport management more effective, more efficient, and optimal. In the current situation, this technology has been applied and given positive effects in the US, China, and Singapore… and is gradually being sought and applied in the Vietnamese market.

For customers

The application of eKYC helps customers to only spend a few minutes to verify their identity, and make their transactions through the application on mobile devices instead of going to the direct counter, waiting in line for their turn, squandering time waiting and coming to the registry office to fill out the forms and papers. Users can automatically complete the online process without any manual intervention. Especially, in the raging Covid19 pandemic, reducing exposure helps protect consumers and those around them. 

Difficulties and challenges that eKYC has to deal with

Aside from the benefits it provides, eKYC has various limitations and issues that must be addressed. Concerns about the protection of personal information are one of the most concerning dangers when applying electronic identification to operational operations. Particularly, some users utilize deep-face technology to cheat and avoid biological verification, so the government and enterprises must be attentive and battle high-tech criminals at all times. For customers, they do not comprehend eKYC, therefore when doing online transactions, it is possible to leak personal account information and transaction information. 

Not only are there difficulties in information dissemination and security, but the challenges of personnel restructuring, improving knowledge, and access to the technology of staff are also important issues are concerned.

Understanding the above importance, the International Data Group in Vietnam (IDG Vietnam) cooperated with Vietnam Digital Communications Association to organize the Vietnam E-government Conference and Expo 2022 with the theme “Digital model of citizenship, university, commerce, developing the population database application and solutions for the national digital transformation enhancement”. The purpose of this year’s conference is to share information and the benefits of e-identification in the present national digital transformation process. 

In the upcoming October, IDG Vietnam cordially invites you to attend the Vietnam E-government Conference and Expo 2022 to have a better understanding of e-identification as well as solutions to difficulties and limitations of e-government shared by leading leaders and experts in the field of digital transformation technology domestically and internationally.




  1. https://ekyc.efy.com.vn/hddt/dinh-danh-dien-tu-ekyc.html#/
  2. http://www.ssc.gov.vn/ubck/faces/oracle/webcenter/portalapp/pages/vi/aptcnoidungchitiet.jspx?id=1762&_afrLoop=35584844866000&_afrWindowMode=0#%40%3F_afrLoop%3D35584844866000%26id%3D1762%26_afrWindowMode%3D0%26_adf.ctrl-state%3Dzwc1i40bn_18
  3. https://hca.org.vn/post/13006
  4. https://indochinatelecom.vn/dinh-danh-dien-tu-ekyc/
  5. https://jcpmediaroom.com/kien-thuc/ekyc-la-gi-thuc-tien-ap-dung-ekyc-tai-viet-nam/
  6.  https://www.bidv.com.vn/bidv/bidv-blog/bao-mat/ekyc-la-gi
  7. https://tapchicongthuong.vn/bai-viet/thuc-trang-trien-khai-dinh-danh-dien-tu-ekyc-tai-cac-ngan-hang-thuong-mai-viet-nam-84454.htm
  8. https://www.thegioimaychu.vn/blog/ai-hpc/kyc-ekyc-va-vai-tro-cua-ai-trong-linh-vuc-xac-dinh-danh-tinh-khach-hang-p10855/
  9. https://www.vietnamplus.vn/co-tai-khoan-dinh-danh-dien-tu-khong-can-trinh-the-can-cuoc-cong-dan/806354.vnp
  10. https://vinid.net/blog/tin-tuc-khac/cach-tai-ung-dung-vneid/
  • Hanoi Office:

    Phòng 202, 18-20 Trần Hưng Đạo., Q. Hoàn Kiếm, Hà Nội 
    Tel: +84 24 3933 5611 | Fax: +84 24 3933 5610

  • Ho Chi Minh Office:

    90 Ký Con, Nguyễn Thái Bình, Q1, TP Hồ Chí Minh 
    Tel: +84 28 3827 4427

Please contact us via

** We won’t spam you!

© 2021,IDG Viet Nam All Rights Reserved.