Mizuho to commence proof-of-concept trial of new Digital ID

Maria Nikolova

The Digital ID improves online banking authentication and ongoing customer due diligence by utilizing device location information and facial recognition technology.

Mizuho Bank, Ltd., a subsidiary of Mizuho Financial Group, Inc. (TYO:8411), is set to commence a proof-of-concept trial of a new Digital ID in cooperation with Google Cloud Japan G.K.; Nomura Research Institute, Ltd.; and Dai Nippon Printing Co., Ltd. The Digital ID improves online banking authentication and ongoing customer due diligence (CDD) by utilizing device location information and facial recognition technology.

Mizuho Bank will be responsible for the trial design and results verification. Google Cloud Japan will provide technical support. Nomura Research Institute will develop an online banking app and will build the server system. Dai Nippon Printing will provide facial recognition technology-based authentication functions and will develop API-linked facial recognition functions and e-KYC functions.

The trial will be a first step towards establishing IT system infrastructure for the Digital ID and launching it as a full-fledged service.

This proof-of-concept trial marks the sixth project Japan’s Financial Services Agency has selected for support under the FinTech Proof-of-Concept Hub initiative. This initiative, run by Japan’s Financial Services Agency, facilitates fintech-related proof-of-concept trials in order to accelerate fintech innovation.

Currently, for the sake of balancing security and convenience, online banking authentication mainly relies on two-factor authentication, in which one factor is something the user knows, such as an ID and password, and the other factor is something the user has, such as a dedicated card or a one-time password. However, two-factor authentication cannot completely eliminate phishing-based password theft, unauthorized lending of dedicated cards to others, and similar forms of unauthorized access. Consequently, there is a need to further enhance security without sacrificing customer convenience.

There is also a need for financial institutions to strengthen CDD, an important responsibility in combating money laundering and financing of terrorism and one the Financial Action Task Force on Money Laundering (FATF) has made a priority.

Against this backdrop, Mizuho and its partners will launch the proof-of-concept trial to evaluate whether or not device location information and facial recognition technology can ensure security in online banking and, in the case of device location information, enhance CDD.

The trial is set to run from May 11, 2020 to October 9, 2020.

Read this next

Digital Assets

PENG Crypto Listing Hits Jupiter, Synthetix Rises: BlockDAG’s 10,000x Surge Positions it as the Top Crypto to Buy in April 2024

The PENG crypto listing on Jupiter Exchange marks a vibrant phase for the Solana-based meme token, showcasing its community’s resilience amidst market challenges. Synthetix price prediction becomes increasingly compelling as it marks a notable ascent in the crypto markets.

Digital Assets

Binance executives sue Nigerian authorities over rights violation

Two senior executives from Binance have filed a lawsuit against against Nigeria’s national security adviser’s office and its anti-corruption agency, alleging violations of their fundamental rights.

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

<