Utilizing Facial Recognition Technology... Innovation in Non-Face-to-Face Account Opening

[Asia Economy Reporter Kum Boryeong] Starting in the second half of the year, Hanwha Investment & Securities will allow customers to open accounts remotely using only an ID card and facial photography.

Hanwha Investment & Securities announced on the 27th that its non-face-to-face account opening service utilizing facial recognition technology has been designated as an Innovative Financial Service by the Financial Services Commission.

The Innovative Financial Service designation system applies regulatory exemptions and special measures to fintech (finance + technology) companies or financial institutions to test innovative financial services in the market. Through this, Hanwha Investment & Securities was able to develop and introduce the service while being exempted from the non-face-to-face real-name verification guideline regulations.

A Hanwha Investment & Securities official explained, "Among the existing non-face-to-face real-name verification methods, 'video calls' will be replaced by 'facial recognition technology,' making real-name verification easier and simpler." The video call method was only available during financial institution business hours and had inconveniences such as the burden of facing employees via video.

When facial recognition technology is applied as the real-name verification method for the non-face-to-face account opening service, customers can complete real-name verification simply by verifying their identity through mobile phone authentication and then photographing their ID card and face. Additionally, AI-based facial recognition technology analyzes facial features to compare and verify the ID photo and the face, reducing verification errors compared to visual confirmation by financial institution staff.

Hanwha Investment & Securities plans to apply this service to the non-face-to-face account opening of the STEPS financial investment service starting in the second half of the year.

Yoo Changmin, Executive Director of the Global Digital Product Office at Hanwha Investment & Securities, said, "This service, designated as an Innovative Financial Service, is the first in Korea to utilize facial recognition technology for non-face-to-face account opening, providing an innovatively convenient account opening service for financially vulnerable customers and those who find existing real-name verification methods inconvenient. We will continue to provide services that enhance customer convenience by actively utilizing advanced technologies with a customer-centric management goal and strive to lead financial digitalization."