BoT: E-KYC headed into real world

BoT: E-KYC headed into real world

At least five banks testing out electronic know your customer (e-KYC) technology in the regulatory sandbox are expected to exit the process by the end of the year, says a senior official at the Bank of Thailand.

These banks have found some glitches in the digital ID verification process, data collection and customer services that the central bank has asked them to address, said assistant governor Siritida Panomwon Na Ayudhya.

Ten banks are experimenting with e-KYC in the sandbox in the first round.

She said in the next stage the central bank wants to allow banks, insurers and securities brokers to test out information connections for e-KYC in the sandbox before the official launch to ensure the system's accuracy and security.

The e-KYC should help shorten the period for identity verification, reduce workloads and offer greater convenience.

However, banks need to educate customers on how to use the e-KYC in a safe manner, said Ms Siritida.

The technology paves the way for more banking services on mobile and electronic devices. With online verification, consumers, particularly those who are unbanked, can open new accounts, apply for loans online, take out new life insurance policies and invest in new mutual fund companies through electronic devices.

The central bank said the 10 banks have tested out biometric technology including facial recognition for digital verification in the regulatory sandbox.

Regarding peer-to-peer lending, Ms Siritida said only a few fintech firms are ready to provide such services, though many have expressed interest in the business.

Thakorn Piyapan, chairman of Krungsri Consumer and Bank of Ayudhya (BAY) head of digital banking and innovation, said the bank is preparing its digital lending system and plans to unveil it in early February.

The technology will enable the bank's lending products to have improved access to customers and BAY can better screen loan applicants.

BAY has 2 million loan applications on average a year, of which 800,000 are new accounts. He predicted 300,000 digital loan applications in 2020, with half for credit cards and half for personal loans.

The bank's digital lending will be available on all of the group's digital platforms including Krungsri mobile application, U Krungsri Consumer's mobile app U Choose and websites.

Bangkok Bank executive vice-president Thaweelap Rittapirom said the National Digital ID's central system to authenticate digital identity service will help online account deposit services take shape.

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