The Financial Services Agency has requested that the introduction of online identity verification using IC-chip reading be brought forward, with mandatory implementation targeted to begin in April 2027. In response, The Bank of Kyoto and others are moving to standardize identity verification at account opening using My Number Cards.
As part of cybersecurity measures, the transition to online identity verification (eKYC), which reads IC chips embedded in My Number Cards and other documents, is progressing. The Financial Services Agency has called for stronger existing measures and standardization of identity verification methods when applications for transactions are submitted, and indicated a policy of bringing forward the introduction of this system as an alternative to transmitting images of documents.
Following the Financial Services Agency's announcement, banks have begun moving to switch their account-opening identity verification methods to IC-chip reading. The Bank of Kyoto will standardize the method using My Number Cards from 2 November, Mizuho Bank will stop photographing driver's licenses for verification from the 19th, and Sumitomo Mitsui Banking Corporation will adopt the same measure from the 23rd. SBI Shinsei Bank plans to make the transition from the 28th.
Among listed companies providing online identity verification services, Showcase offers ProTech ID Checker and attracted investor interest on the strength of its track record of adoption by more than 500 companies. Related companies providing AI-based authentication solutions are also attracting attention from the perspectives of money flows and legal compliance.
Other companies providing eKYC-related services, including Hitachi, Ltd., Cybertrust Japan, GMO GlobalSign Holdings, and Flight Solutions, were also cited among several stocks, and each is expanding its capabilities through technologies such as biometric authentication, image analysis and cloud integration.