Financial Authorities Accelerate Innovation in Non-Face-to-Face Authentication and Identity Verification... TF Holds First Meeting

[Asia Economy Reporter Kim Hyo-jin] Financial authorities are accelerating improvements to authentication and identity verification systems in the financial sector through non-face-to-face innovative technologies.

On the 8th, the Financial Services Commission held the first meeting of the Financial Sector Authentication and Identity Verification System Innovation Task Force (TF) at the Government Seoul Office, attended by the Financial Supervisory Service, the Financial Security Institute, the Korea Financial Telecommunications and Clearings Institute, and experts in financial security.

Although online and non-face-to-face electronic financial transactions have become widespread and the revised "Electronic Signature Act," which abolishes the status of the public certificate, has passed the National Assembly, financial authorities and others believe that current regulations related to authentication in electronic financial transactions have limitations in reflecting new technologies.

There are also criticisms that identity verification, which assumes offline and face-to-face confirmation, does not sufficiently reflect the reality of face-to-face transactions using electronic devices and non-face-to-face transactions utilizing digital new technologies.

At the meeting, the Financial Services Commission and others agreed under three policy directions?technology neutrality, independent industry development, and financial stability?to enable the development and utilization of various innovative authentication methods that can ensure convenience, safety, and security in electronic financial transactions.

Additionally, they plan to establish identity verification methods commensurate with the importance and difficulty level of electronic financial transactions to secure the safety and effectiveness of these transactions.

The financial authorities plan to operate the TF swiftly until next month to prepare policy alternatives for major review items related to authentication and identity verification in the financial sector and then promote related legislative amendments.

Financial authorities expect competition among various authentication methods such as simple passwords and biometric authentication using fingerprints and iris scans following the abolition of the public certificate status.

Currently, some financial companies are testing authentication and identity verification methods through the regulatory sandbox system, such as authenticating identity via bank apps when visiting a bank without an ID card or verifying the authenticity of an ID card using previously submitted scanned images.

Tests are also underway using facial recognition technology to verify real names by comparing official identification documents (resident registration card, driver's license, passport) with a face photo currently taken by the customer, as well as 'facial recognition payment' using pre-registered facial recognition information.

This content was produced with the assistance of AI translation services.