The use of facial recognition technology continues to accelerate across Asia. Particularly where eKYC procedures are concerned, this technology can speed up the process while providing more convenience to consumers.
eKYC Becomes the new Standard
For decades, traditional Know-Your-Customer procedures have been utilized by numerous companies around the world. It is a straightforward system that requires customers to submit documents verifying their identity and address. That information is then often stored in a database by the third-party service provider performing the KYC process.
Unfortunately, that approach also has a drawback. Data breaches have become all too common. More often than not, a data breach will expose customers’ financial and personal information. That situation needs to come to an end. It is for this reason why the APAC region is shifting to eKYC solutions.
A new report by Jumio confirms the benefits of this approach. The Southeast Asia region went through a 78% increase in cyber attacks year-over-year. Those attacks could cost the Asia-Pacific region as much as $1.7tn every year. The demand for new solutions has never been greater.
For Asian banks, the focus lies on faster, easier, and lower-cost digital channels. At the same time, these solutions need to be fully compliant with existing regulatory measures. Electronic Know-Your Customer verification, or eKYC, will satisfy customer and service provider demand.
Facial Recognition Technology
Several options to perform eKYC exist today. The fastest onboarding solution involves the use of facial recognition technology. The Asia-Pacific region has seen a notable uptick in online identity verification procedures in general. That growth will continue to accelerate, particularly as far as biometric authentication is concerned. This is primarily due to both Samsung and Apple openly embracing biometrics and facial recognition.
To make this technology more accessible to customers, there need to be sufficient mobile device compatible with facial recognition technology. Counterpoint Research estimated over one billion smartphones will be able to perform this method of eKYC by 2020. As a result, the use of biometric authentication will keep growing, as it becomes the most convenient solution for consumers.
Asian governments and financial institutions show a growing appreciation for eKYC solution. They also see the merit in utilizing biometric authentication for that specific purpose. Particularly in Singapore, this model has gained a lot of traction since early 2017.
Similar trends can be observed in Hong Kong and Malaysia. Thailand is also getting in on the electronic KYC action, as domestic banks are adopting facial recognition at a rapid pace. It is worth noting the Bank of Thailand recently issued a decree making it easier for banks to integrate eKYC procedures.