The Role of Digital Authentication in Enterprise Digitalisation

In the digital transformation journey, digital authentication is not merely a technical step but serves as the fundamental cornerstone that enables enterprises to operate efficiently, securely, and sustainably within the digital environment. Industries including banking and finance, insurance, e-commerce, and public services all prioritise user authentication and information security. Therefore, properly verifying user identity constitutes a prerequisite for ensuring transparency, safety, and legal compliance.

What exactly is digital authentication, why does it play such a pivotal role in enterprise digitalisation, and which solutions are currently trusted and deployed by businesses and organisations in the market?

What is Digital Authentication?

Digital authentication is the process of utilising technology to verify the identity of an individual or organisation within the online environment. Rather than requiring direct verification of physical documents such as citizen identity cards, household registration books, or handwritten signatures, digital authentication relies on factors including:

• Biometric data (facial recognition, fingerprints, and similar)

• Electronic documents with embedded chips, such as chip-enabled ID cards

• OTP codes, personal devices, and other supplementary verification factors

The objective of digital authentication is to ensure that users participating in digital transactions are the legitimate account holders using or accessing the service, thereby helping to minimise risks of impersonation, fraud, and deception.

Why is Digital Authentication Necessary?

We are witnessing robust growth in online services, which has established stringent requirements for security and user experience. Digital authentication serves as the first "gateway" to protect both users and enterprises from risks such as:

• Identity impersonation: utilising forged documents, manipulated images, and deepfake technology to hijack accounts and conduct fraudulent lending 

• Personal data breaches: when manual authentication methods are compromised or lack adequate security 

• Legal risks: when enterprises fail to comply with new security and authentication regulations

Furthermore, digital authentication supports businesses and organisations by:

• Optimising operational processes: reducing verification costs and saving time in customer engagement and service delivery 

• Enhancing user experience: enabling users to register, transact, and verify their identity through just a few streamlined steps 

• Facilitating rapid scaling: deploying remote services without dependence on physical branches or transaction points

Advantages of Digital Authentication Over Traditional Authentication

Compared with manual authentication methods, digital authentication delivers numerous superior advantages.

Recent Government Changes in Protecting Users in the Digital Environment

Currently, within the context of comprehensive digitalisation, the Vietnamese Government has issued numerous regulations aimed at strengthening personal information security and protecting citizens in the digital environment. Several notable documents include:

Decree 13/2023/ND-CP on personal data protection stipulates principles for collecting, processing, and storing personal information, requiring organisations to implement appropriate security measures.

Circular 50/2024/TT-NHNN (effective from 1 July 2024): issued by the State Bank, requiring credit institutions and payment intermediaries to apply multi-factor electronic authentication, particularly when providing remote services.

Government Project 06: promoting the application of electronic identification and authentication, developing population data, and integrating with public-private services.

These regulations demonstrate the trend that digital authentication is no longer optional but rather a prerequisite for enterprises to survive, develop, and legitimise their operations in the digital environment. Additionally, these regulations ensure that service users receive information security protection and identity safety when utilising services provided by organisations and enterprises in the digital environment.

FPT eID - Comprehensive Digital Authentication Solution for Vietnamese Enterprises

Developed and deployed by FPT Corporation, Vietnam's leading technology conglomerate, FPT eID represents a digital authentication solution featuring outstanding products and technologies. Among these, the flagship product designed to align with Vietnamese standards and characteristics, currently utilised by numerous organisations and enterprises, is FPT.IDCheck.

FPT.IDCheck serves as a digital shield against identity impersonation:

• Reading and authenticating information on chip-based ID cards: The system automatically compares chip data with details on the photographs and within its own database. 

• Facial recognition and verification: matching real faces with document photographs and biometric data. 

• Detecting impersonation behaviour: identifying deepfake videos, edited images, and data manipulation. 

• Liveness detection: ensuring the authenticating person is real, not an image or video.

FPT.IDCheck has been deployed across more than 40 financial institutions, banks, insurance companies, and numerous government agencies, serving over 2 million authentication transactions monthly. The solution fully complies with current requirements and legal standards issued by the Vietnamese Government.

Cloud-Native, Easy Integration, Easy Scaling

FPT eID provides a completely API-based authentication system that can be rapidly integrated into any platform: bank onboarding, insurance systems, public service information portals, e-wallets, e-commerce platforms, and others.

Conclusion

Digital authentication not only helps enterprises save costs and time but also serves as a "fortress wall" against fraud risks and identity impersonation in the digital era. Within the context of increasingly stringent legal regulations, selecting a standardised, secure, and effective digital authentication solution such as FPT eID represents a strategic step for enterprises to advance further on their digitalisation journey.