- FICO survey shows a growing acceptance of security measures as online account 
opening surges   

FICO's identity proofing and digital banking survey shows identity theft is a 
tangible threat for people in Vietnam – 9.5 percent said they know their 
identity has been stolen and used by a fraudster to open an account, while a 
further 15 percent believe it is likely to have happened.   

Photo - https://mma.prnewswire.com/media/1495830/Social_Image_Vietnam.jpg 

Logo - https://mma.prnewswire.com/media/450763/FICO_Logo.jpg 

The acknowledged level of risk from identity theft means there is a good 
understanding of why identity proofing is an integral part of the banking 
experience in Vietnam.

More information: 
https://www.fico.com/en/latest-thinking/ebook/vietnam-consumer-survey-2021-identity-proofing-and-digital-banking


Understanding the need for ID proofing 

Nearly three-quarters (72 percent) of respondents recognized that identity 
proofing happens for their protection. However, in Vietnam some consumers are 
cynical about the reasons their identity is confirmed. While 56 percent 
recognize there is an element of regulation driving providers to carry out more 
checks, 28 percent think this is done to enable financial institutions to sell 
more. 

A majority (60 percent) of Vietnamese respondents did see identity proofing as 
a way for banks to protect themselves, while 49 percent regard it as a tool to 
prevent money laundering. 

Most Vietnamese are open to providing their bank with a biometric such as a 
facial scan, fingerprint, or voiceprint to secure their accounts. The survey 
revealed that once they understand why it's necessary, 41 percent are happy to 
provide their biometrics. Only 9 percent say that banks should never capture 
biometrics, while just 10 percent are willing but unhappy to provide them.

"In a lot of Asian countries, fingerprinting, identity cards and authentication 
apps have been commonplace for some time," said Subhashish Bose, lead for 
fraud, security and compliance in Asia Pacific. "There is less concern around 
privacy and the survey shows there is broad acceptance of the benefits that 
biometrics deliver when it comes to securing bank accounts and stopping money 
laundering."

Asia is all about smartphones…and branches

In Vietnam, 44 percent of consumers prefer to open bank accounts digitally 
while 37 percent prefer branches. Account opening by phone (11%) and post (5%) 
is twice as popular than in the other Asian countries surveyed. However, over 
the last year, thanks to the pandemic, 63 percent of Vietnamese are more likely 
to open an account digitally than a year ago; while those who attend branches 
often do so for social and technical reasons. 

"While digital banking is growing steadily, Vietnam remains a largely unbanked 
and cash-based society, with those who do have accounts visiting branches to 
make deposits and withdrawals," said Bose. "Slow internet connections and a 
strong belief that accessing a branch offers a more informed and secure account 
opening process explains why many Vietnamese turn up in person."

As the landscape evolves and a preference for digital banking rises, there will 
be further opportunity for banks who adopt multichannel strategies and can 
engender trust in digital channels.

Don't ask me to jump through hoops

Vietnamese who open an account digitally, prefer to carry out the process 
entirely in their chosen channel whether it be smartphone or website. If 
customers are asked to move out of channel to prove their identities, many of 
them will abandon the application, either giving up on opening an account 
completely (7 to 9%) or by going to a competitor (9 to 17%). Of those who don't 
immediately abandon, up to an additional 21 percent will delay the process.

The survey found that any disruption matters. Asking people to scan and email 
documents or use a separate identity portal causes almost as much application 
abandonment as asking them to visit branches or mail in documents. 

This survey was conducted in January 2021 by an independent research company 
adhering to research industry standards. 1,000 Vietnamese adults were surveyed, 
along with 13,000 consumers in the USA, UK, Canada, South Africa, Australia, 
New Zealand, Indonesia, Malaysia, The Philippines, Thailand, Brazil, Colombia 
and Mexico.

FICO (NYSE: FICO) will discuss the results in a session at its free virtual 
event Success Realized: Digital Transformation Delivered ( 
https://c212.net/c/link/?t=0&l=en&o=3140736-1&h=3616775751&u=https%3A%2F%2Fevents.fico.com%2Fdigital-transformation-apac%2Fagenda&a=Success+Realized%3A+Digital+Transformation+Delivered 
) (APAC), which runs April 27-29, 2021.

SOURCE  FICO

CONTACT: Neil Mirano, RICE for FICO, +65 3157 5680, neil.mirano@ricecomms.com; 
Saxon Shirley, FICO, +65 9171 0965, saxonshirley@fico.com