PTPTN Provides a New Digitalised Experience for Customers with e-KYC
BANDAR SUNWAY – The National Higher Education Fund Corporation (PTPTN) has launched the myPTPTN mobile application that will make it easier for its customers to gain access to the corporation’s many facilities anytime and anywhere.
The myPTPTN application primarily performs four functions: creating an SSPN account and deposit, repaying PTPTN student loan arrears, requesting wage deduction to pay the PTPTN student loan, and requesting direct debit from the bank to pay the arrears. The application is expected to benefit more than 3.63 million borrowers and 5.28 million National Education Savings Scheme (Simpan SSPN) depositors.
Officiated by Minister of Higher Education of Malaysia, Datuk Seri Dr Noraini Ahmad, the newly launched myPTPTN application is equipped with Electronic Know-Your-Customer (e-KYC) which is the process of verifying and maintaining customer identity records that are recognised by Bank Negara Malaysia as one of the keys to digital transaction security.
When creating a myPTPTN account, users must first authenticate their identification by uploading a Malaysian identity card and taking a photo. The user can successfully register for a myPTPTN account after completing the e-KYC identification verification. Customers will only be able to review statements or make any transactions on the application once they have gone through the e-KYC identification verification, including email verification and mobile number during registration.
The e-KYC method can only be completed five times per user. Therefore, if the e-KYC fails on a regular basis, the user must go to a nearby PTPTN counter to be processed.
BNM’s Digital Onboarding Policy
In June 2020, Bank Negara Malaysia (BNM) issued a policy document on e-KYC with the aim to accelerate and streamline the practices of industry players in their adoption of e-KYC technology. The adoption of e-KYC technology by the industry is in line with the BNM’s efforts to facilitate greater digital offerings of financial services. This paved the way for greater innovation in the financial sector, including the end-to-end offering of digital financial services for customers.
Included within the policy, BNM states that a financial institution should guarantee that appropriate measures for the identification and verification of a customer’s identity through e-KYC are secure and effective. In order to ensure this, a combination of authentication factors should be adopted when establishing measures to verify the identity of a customer through e-KYC.
Similar to what has been integrated into the myPTPTN application, BNM states in the policy that a financial institution should take into consideration the three basic authentication factors, namely, something the customer possesses (e.g., identity card, registered mobile number), something the customer knows (e.g., PIN, personal information), and something the customer is (e.g., biometric characteristics). An e-KYC solution that depends on more than one factor should be more difficult to compromise than a single factor system.
Benefits of Using e-KYC
All businesses and economic agents, especially financial institutions and banks, are experiencing a drastic process of digitalisation. Digital transformation has been part of the most relevant changes in organisations in the last decade, making those who forget this task to lose opportunities in their sector or even disappear.
Companies and organisations are struggling to transform and digitise processes that seemed difficult to automate and get remote. However, specialised businesses such as WISE AI have appeared in order to achieve this task, using cutting-edge technologies to transform and optimise processes.
With the implementation of e-KYC, businesses and organisations will enable the digital onboarding of customers to occur anytime and anywhere. This means that a majority of customers no longer need to visit the physical premises of a financial service provider to open an account.
An optimal and effective digital identity solution should keep users safe and secure from identity theft, fraud, and data breaches. A solution such as WISE Digital ID, which is a singular ID to access services by using users’ face ID on their phone, gives them a simple, fast, and secure way of proving who they are online and in person.
In addition to increased customer convenience, the digital onboarding of customers enabled by e-KYC also lowers costs for both users and providers. In the long run, this can also help increase competition in the financial sector.
Here at WISE AI, we offer a wide range of e-KYC solutions based on artificial intelligence (AI) and machine learning that are helping dozens of companies in their digital transformation while maintaining compliance with BNM’s e-KYC policy and MCMC guidelines on the registration of end users.
About WISE AI
WISE AI is an award-winning Artificial Intelligence company specialising in digital identity technologies. We develop world-class emerging deep tech that is adopted by the government and multiple industries. Our AI-powered solutions include EKYC, digital ID, digital signature, and blockchain. Our technology is optimised for the recognition of ASEAN faces.
