Slide 1:

Good morning Mr. ___ and students here. I am Duong, and here is Duy. We are represented for our
group to present our topic “eKYC in banking sector”. Our group has 6 membersHere is the outline of our
presentation. We have six main parts:
(1) Overview of eKYC,
(2) International experiences,
(3) eKYC in Vietnam’s banking sector,
(4) Legal framework and policies,
(5) Recommendations for Vietnam,
and finally, (6) a short game to make our session more interactive.

Slide 4: Overview

Let’s begin with the first part: Overview.”

“In this section, we will provide a general introduction to eKYC.

“Let’s start with the definition of eKYC.

eKYC stands for Electronic Know Your Customer.
It is a digital tool that allows banks to identify and verify customers entirely online.
Instead of going to a physical branch, customers can upload documents and confirm their identity using
biometrics, AI, and OCR technologies.
The biggest advantage is that no face-to-face meeting is required, making the process faster and more
convenient for both banks and customers.”

Slide 5:

“eKYC has many practical applications in banking and finance.

First, it is used to open a bank account online. Customers can upload an ID and a selfie, then the system
applies face recognition and OCR to verify the data.
Second, eKYC supports transaction verification, helping confirm identities in online payments and
transfers.
Third, it is applied in financial service registration, including e-wallets, credit cards, or loans.
Finally, there are other uses beyond banking, such as in securities, telecommunications, or even real
estate. This shows how flexible and widespread eKYC has become.”

Slide 6:

“Although eKYC is convenient, it must follow certain principles.

First, it ensures identity accuracy to prevent fraud.
Second, it must guarantee data security and comply with national laws, such as Decree 13/2023 in
Vietnam.
Third, it needs to follow legal compliance related to anti-money laundering and counter-terrorism
financing regulations.
Fourth, it must deliver a great customer experience: the process should be fast, simple, and paperless.
And finally, scalability is key – eKYC should work across multiple channels, including apps, websites, and
even at branches.”
Slide 7:

The journey usually starts when a customer uploads their ID or passport.

Then, the system uses OCR technology to automatically extract the information.
Next comes biometrics – this is where the customer takes a selfie or short video to verify they are real.
After that, the system compares the data with various databases, blacklists, and AML lists to ensure
compliance.
Finally, once everything is validated, the information is approved and securely stored, often using cloud
platforms or blockchain.
This step-by-step process makes the customer onboarding experience faster and safer.”

Slide 8:

“To make this process possible, eKYC relies on a set of advanced technologies.
OCR and ICR are used to recognize and digitize text from documents.
Face recognition and liveness detection make sure the person is real and not just a photo.
We also have other biometric methods like fingerprint, voice, or iris scanning.
On top of that, AI and machine learning are applied to improve accuracy and detect suspicious cases.
And finally, blockchain and self-sovereign identity give an extra layer of trust and data protection.”

Slide 9:

“eKYC brings several important benefits.

First, it is fast and simple – customers no longer need to visit a branch.
It also helps lower the cost of doing business by automating manual processes.
Another key benefit is improved risk management and compliance, since the system can check against
regulatory databases.
It also makes access to money and financial services much easier, especially for people in remote areas.
Most importantly, it offers more security and provides a better overall experience for consumers.”

Slide 10:

“However, like any technology, eKYC also comes with risks.

One concern is forgery or misidentification – criminals may try to trick the system.
There are also cybersecurity and data protection risks, since sensitive personal data is involved.
Legal and compliance risks arise when regulations are not followed properly.
From an operational side, technical failures can disrupt the process.
And of course, financial fraud and customer trust are always major concerns.
So, while eKYC is powerful, strong safeguards are necessary.”

Slide 11:

let’s take a global perspective.

eKYC is strongly linked to financial inclusion – it helps more people access banking and payments.
For example, in India, the Aadhaar digital ID system is the backbone of UPI payments, already linking
over 700 million IDs with bank accounts.
In developing economies, digital banking and payments remain essential for growth, as highlighted in
the Global Findex 2024.
At the same time, legal frameworks play a key role.
The FATF Guidance provides standards for trust, security, and risk management.
And in Europe, the GDPR sets the rules for data processing, ensuring user rights and privacy.
So, globally, eKYC is not only about technology, but also about regulation and inclusion.”

Slide 12:

“In Vietnam, digital growth is very fast, and there is a strong push for financial inclusion.
The legal framework is still evolving, while traditional KYC remains slow and inconvenient —
so banks are moving toward eKYC.

However, there are research gaps.

We don’t have enough Vietnam-specific data, such as account opening time, cost per application,
or fraud prevention results.
There are no standard KPIs for banks, and little global comparison across channels or lessons
from systems like Aadhaar or Singpass.
So, more studies and benchmarks are needed to guide eKYC adoption in Vietnam.”

Slide 13:

"Now, let’s move on to the international experience in eKYC.

Looking at how other countries have adopted eKYC gives us useful lessons and best practices.
This helps us understand the challenges, the policy frameworks, and also the technology that
enabled successful implementation."

Our first case study is Singapore.

Singapore is one of the pioneers in digital transformation, and its approach to eKYC has become
a reference model for many other countries."

"Let’s look at the context.

Singapore is a small island nation with a high income level. Almost everyone there has a bank
account and a mobile phone, which makes digital adoption easier.

Before 2014, the country had already built a strong KYC foundation with strict AML and CFT
compliance. For example, they had the Prevention of Money Laundering and Terrorism
Financing Act, which was regularly updated.

This strong regulatory environment, combined with the Smart Nation initiative, paved the way
for eKYC.
In particular, digital identity systems like Singpass and MyInfo became the backbone of eKYC
in Singapore."

Slide 14:

“Let’s begin with the context. In 2014, Singapore launched the Smart Nation Initiative with the
vision of transforming into a smart nation.
One of its strategic national projects is the National Digital Identity – the foundation for Singpass
and MyInfo, which power eKYC.
With this system, the KYC process is fully digitalized: it reduces processing time by 80%,
increases approval rates by 15%, and minimizes fraud.
So, eKYC in Singapore is not just a financial technology – it’s a national digital infrastructure.”

Slide 15:

“Now let’s look at a practical example.

DBS Bank, one of the largest banks in Singapore, has successfully applied Singpass and MyInfo
to streamline digital account opening.
Here is a quick video to show how the process works in practice.”

Slide 16:

“The process is very straightforward:

Step 1: Customers download and sign up on the DBS Bank app.
Step 2: They log in with Singpass and give consent to retrieve their personal data via MyInfo.
This direct API connection with government databases ensures accurate and up-to-date
information.
Step 3: Customers enter additional required details.
Step 4: They provide personal credentials and use biometrics like facial recognition or
fingerprints for authentication.
This way, DBS combines security and convenience in its eKYC journey.”

Slide 17:

“Here we see customer feedback.

Over 85% of users reported being satisfied or very satisfied with digital banking.
The biggest advantages are the ability to complete banking services fully online, availability
24/7, and easy-to-use interfaces.
Clearly, digital banking has gained strong acceptance among customers.”

Slide 18:

“The results are impressive.

DBS reduced account opening time by 80% and achieved significant operational efficiency.
For customers, the experience is seamless – instant account opening and faster transactions.
Today, 90% of new DBS customers onboard digitally, showing strong adoption.
Overall, Singapore has become a leading fintech hub in the region.”

Slide 19:

“Looking at future intentions: nearly 87% of customers definitely or somewhat want to continue
using digital banking.
However, some concerns remain – especially security, which 48% of respondents pointed out.
This highlights the importance of strengthening trust and security in digital services.”

Slide 20:

“In response, Singapore’s leading banks have introduced strong security measures.
DBS replaced traditional OTP with digital token-based protocols.
UOB introduced the ‘Money Lock’ feature, allowing users to lock large transactions and prevent
unauthorized withdrawals.
These steps directly address customers’ security concerns.”

Slide 21:

“From this case study, we can see three main success factors:
First, the existence of a strong national digital identity system, Singpass and MyInfo.
Second, a clear regulatory framework.
And third, close collaboration between the government and banks in implementation.
These factors together ensured the success of eKYC in Singapore.”

Slide 22:

“Of course, there are still limitations.

For example, concentration risk – a single point of failure, cybersecurity and privacy concerns,
and the risk of excluding elderly or less tech-savvy populations.
Balancing convenience and security is also a challenge.
In addition, there are issues with international interoperability and high infrastructure costs.
So while Singapore’s eKYC journey is successful, it also comes with lessons to be learned.”

Slide 23:

For decades, financial inclusion was a monumental challenge in India. Before

2010, in a population of over a billion, only 1 in 25 people had a valid
official ID, and just 25% held a bank account. How could the economy
include everyone when so many were officially "invisible"?

The answer emerged with a groundbreaking initiative: Aadhaar.

(Title Card: The Emergence of Aadhaar and India Stack)

Narrator: In 2010, the Indian government launched Aadhaar—a unique

identity number linked to biometric and demographic data. This wasn't just
an ID card; it was a digital key that would unlock a new era for Indian
finance, known as the India Stack.

(Title Card: Adoption of Aadhaar-based e-KYC by Indian Banks)

 Narrator: The transformation began in the banking sector. The first major
breakthrough came in October 2013, when a leading bank launched India's
first paperless account opening using Aadhaar-based e-KYC.

 Visual: Show a person using a MicroATM device, scanning their fingerprint,

and receiving a printed receipt.
 Narrator: Instead of stacks of documents, customers simply provided their
Aadhaar number and biometrics. The result was staggering: the account
opening process was slashed from 7-10 days to just 1 day.

The momentum accelerated. In December 2014, HDFC Bank partnered

with the National Payments Corporation of India (NPCI) to implement e-KYC
on a larger scale.

 Visual: Show a bank employee using a biometric scanner. Data fields like
name, address, and photo auto-populate on a screen.
 Narrator: With a fingerprint scan, a customer's verified data—name,
address, date of birth, and photo—was automatically filled into the
application form. This made onboarding seamless, efficient, and incredibly
secure.

The true power of Aadhaar was realized when it was integrated with
the Unified Payments Interface (UPI).

 Visual: Show a quick animation of a UPI payment being authenticated via

Aadhaar.
 Narrator: This integration allowed for instant and secure authentication of
electronic transactions. The combined effect of e-KYC and UPI led to an
explosion in financial inclusion. Tens of millions of accounts were
opened within short periods, with examples like 50 million new
customers onboarded during 2023-2024 alone.

(Title Card: Results and Impact)

Narrator: The results have been nothing short of revolutionary.

 Revolutionized Customer Onboarding: From weeks to minutes.

 Supported Financial Inclusion: Bringing millions of unbanked individuals
into the formal economy.
 Expanded Rural Access: Through systems like Aadhaar-enabled Payment
Systems (AePS) and Business Correspondent Agents (BCAs).
 Created an Efficient & Secure Digital Ecosystem: Reducing fraud and
bureaucracy.

(Title Card: Success Factors)

Narrator: What made this possible? Several key factors converged:

1. A National Identity Platform: Aadhaar's near-universal coverage.
2. Strong Legal & Regulatory Support: Backing from the government and
the Reserve Bank of India (RBI).
3. Robust Technology: Real-time APIs and secure biometric authentication.
4. Convenience & Low Cost: Making it accessible to all.
5. Widespread Acceptance: Trust and adoption by both citizens and banks.

(Title Card: Limitations and the Future)

Narrator: Of course, the journey hasn't been without challenges, including

ongoing debates about data security, legal issues, and bridging
the digital divide.

But the story of Aadhaar-based e-KYC stands as a global benchmark. It

demonstrates how technology, backed by a clear vision and strong
infrastructure, can empower a nation and transform the lives of its citizens,
one fingerprint at a time.

EU

(Title Card: eKYC in the European Union - A Patchwork of Solutions)

Narrator: While countries like India and Singapore built unified, national
digital ID systems, the European Union faced a different challenge. How do
you create a seamless digital identity framework across 27 diverse member
states, each with its own laws and legacy systems?

The answer lies not in a single system, but in a framework for harmony.

(Title Card: Context - The EU's Decentralized Model)

Narrator: Unlike Singapore's SingPass or India's Aadhaar, the EU does not

have a single national digital ID.

 Instead, each country has its own national eID: Germany's nPA, Italy's SPID,
Spain's DNIe, and Sweden's widely used BankID.
 The key to making this work is the eIDAS Regulation. This common legal
framework ensures that a national eID from one member state is recognized
and accepted in another.
 Application: This enables cross-border eKYC. For example, a Swedish
citizen can use their BankID to open a bank account in Finland.

(Title Card: Case Studies - Innovation at the Bank Level)

 Narrator: In the absence of a monolithic system, innovation is driven by
leading financial institutions. Major banks like Deutsche Bank in Germany
and BNP Paribas in France are pioneering new technologies.

 They are experimenting with blockchain and Self-Sovereign Identity

(SSI), which would give customers complete control over their personal
data.
 Simultaneously, they are applying video-KYC and biometric
verification to streamline and secure cross-border online account openings.
The initiative is shifting from the state level to the private sector.

(Title Card: Results and Limitations of the EU Model)

Narrator: This decentralized approach has yielded significant benefits, but

also presents distinct challenges.

The RESULTS include:

 Optimized Customer Experience & Accelerated Onboarding for cross-

border services.
 Higher Completion Rates for digital applications.
 Reduced Operational Costs for banks serving a pan-European clientele.
 Strengthened Customer Trust through advanced security.

However, the LIMITATIONS are clear:

 A Lack of Full Harmonization across the bloc creates complexity.

 High Investment Costs for banks needing to integrate with multiple
national systems.
 High Dropout Rates if the process becomes too confusing for users.
 Persistent Cyberattack Risks that must be managed across a fragmented
landscape.

(Title Card: Success Factors - What Makes It Work?)

Narrator: Despite the challenges, key factors sustain the EU's model:

1. A Strong Legal Framework (eIDAS): The bedrock of cross-border

recognition.
2. Advanced Technology Infrastructure: Willingness to adopt AI,
blockchain, and biometrics.
3. Public-Private Collaboration: Essential for developing practical solutions.
4. Customer Trust: Built on robust data protection laws like GDPR.
5. Cross-Border Scalability: The ultimate goal of the entire system.

(Title Card: Lessons for a Digital Future - The Vietnam Use Case)
 Narrator: So, what are the key takeaways for a nation like Vietnam, looking
to build its own digital identity ecosystem?

The lessons are clear:

1. Technology:
o Invest in a national digital identity system as a core utility, similar to
MyInfo or Aadhaar, integrated with banks and public services.
o Leverage advanced technology like AI and biometrics from the start to
ensure security and reduce fraud.
2. Customer Experience:
o Prioritize a fast and user-friendly onboarding process. Offer diverse
methods, like video KYC, to ensure accessibility for all citizens, including
those in rural areas.
3. Legal & Regulatory:
o Establish a strong personal data protection law to build citizen trust.
o Foster public-private collaboration between the government and banks to
develop effective and widely-adopted eKYC platforms.

Narrator: The EU demonstrates that a unified vision can work alongside

diverse systems. For emerging economies, the combined lessons from India's
scale, Singapore's efficiency, and the EU's interoperability provide a powerful
blueprint for an inclusive digital future.