Daegu Bank will be the first bank in Korea to ease their clients to open checking and savings accounts through a fully digital process, thanks to FacePhi’s technology
SelphID, its digital onboarding service and Selphi, its facial identification access program have been the technological solutions chosen by the entity, which will also be part of the banking innovation project promoted by the Korean authorities
The company’s biometric recognition software has already been implemented in other Korean companies, both in the financial and healthcare sectors
Soong-in Lee, executive vicepresident of Daegu Bank and Javier Mira, CEO of FacePhi
The Korean government is betting on Spanish technology to boost innovation in its banking system, by incorporating FacePhi‘s biometric solutions into its “Innovation Financial Services” strategic plan. Thus, the company will become one of the companies selected to test the new contributions of Artificial Intelligence and ICT to Korean banking, one of the most digitized in the world.
Integration into this pioneering program has been possible thanks to Daegu Bank, one of the largest banks in the country, which has made public its recent agreement to integrate the Spanish company’s facial recognition and optical character reading systems into its mobile app. Thus, the support of the native banking entity Daegu has been key to having the confidence of the Korean authorities and accessing its regulatory sandbox on the financial sector. These “sandboxes” are spaces of great importance for legislative progress, since on these, innovative projects are tested in real market conditions with potential benefits for citizens, while improving the legal framework in which they operate, offering the maximum guarantees for companies, governments and users.
The model for Korea
Daegu Bank will implement the FacePhi technology in two successive phases. In the first place, the SelphID digital onboarding solution will become the new way in which clients may open their bank account with the entity, by simply taking a selfie and a photo of their identification document. In 2021, the entity’s application (IMBANK) will facilitate secure access for users through facial recognition, without passwords. After this stage, it would be possible to extend the use of this identity verification system to many other processes, such as the validation of bank transfers or obtaining public certificates.
According to Dongpyo Hong, General Manager of FacePhi Asia-Pacific: “During 2020, FacePhi has implemented its facial recognition technology in different financial companies in Korea, but the collaboration with Daegu Bank is a project that we are especially satisfied with, as it is a pioneer in innovation and a benchmark bank. We hope that this agreement, together with the success stories achieved over the past year, will continue to open doors for us in the Korean financial sector”.
For his part, Javier Mira, CEO of FacePhi, points out that “being part of a project of this magnitude, approved for the ‘Innovation Financial Services’ program, is a real stimulus for FacePhi, since it means being at the international forefront of the sector and the initiatives promoted by the Korean government for the digital transformation of its banking sector. Participating in a regulatory sandbox is a good opportunity for biometric technology and legislation to progress hand in hand, opening new opportunities for companies and reinforcing the security with which citizens receive these innovations”.
Daegu Bank is one of the largest regional banks in Korea, a benchmark in the metropolitan city of Daegu. Since 2011, it is part of the financial holding company DGB Financial Group, which also includes companies such as Daegu Credit Information and Kardnet.