#Japan #Tokyo #Hitachi #Cybertrust #eKYC Service

Hitachi Enhances eKYC Support Service with Cybertrust Collaboration

Hitachi, a leading manufacturer and technology services provider, has partnered with Cybertrust to expand its eKYC support service. This enhanced service facilitates secure identity verification by enabling the reading of IC chips in identification documents through iPads, providing banks with a reliable process for customer onboarding and verification.

Introduction of IC Chip Reading Service

Starting September 16, Hitachi has begun offering the IC chip reading feature for identity verification on iPads, tailored for financial institutions. Mitsubishi UFJ Bank has already adopted this service and will operationalize it in its branches, enabling a more secure approach to customer identity verification.

This service utilizes a Bluetooth-connected card reader that interfaces with the iPad, ensuring that identity documents such as driving licenses, My Number cards, and residence cards can be scanned securely. By verifying the authenticity of the IC chip information, the service helps mitigate the risk of identity fraud commonly associated with document forgery.

eKYC in the Financial Sector

The financial sector has increasingly shifted towards electronic Know Your Customer (eKYC) processes, primarily using facial recognition technology to verify identities. However, as regulations evolve—particularly with new laws set to take effect in April 2027—there is an urgent need for verification systems that leverage IC chip reading, among other methods, to enhance security against identity theft.

Current eKYC practices rely heavily on the “Photo Matching Method,” where a photo of the identity document is compared to a live image of the user. Although prevalent, this method bears the risk of document forgery, hence the legal shift toward the IC chip reading methods known as “Verification Method B” and “Verification Method C.”

Given this backdrop, financial institutions have increasingly adopted non-contact methods. Many have identified iPads as efficient tools for this transition, but the challenge has been that these devices originally lacked IC chip reading capabilities. Hitachi's expansion of the eKYC service addresses this gap, allowing existing iPad devices to support condensed customer verification in line with forthcoming regulations.

Collaboration with Cybertrust for Enhanced Features

Hitachi has been working with Cybertrust since December 2020 to provide eKYC support services primarily for financial institutions. Previously, this collaboration enabled the verification of identity document IC chips on smartphones. Now, by utilizing Cybertrust's “iTrust ID Verification Service eKYC Library” and incorporating Canon Marketing Japan's “ID-MY2 Personal Authentication Card Reader,” Hitachi has successfully enabled a compliant solution for iPads pending legal change.

Mitsubishi UFJ Bank will also utilize this enhanced service, moving from online-only identification to an in-branch verification system that utilizes iPads, thereby ensuring a smooth customer experience while significantly reducing the workload for staff.

Benefits of the New Service

1. Secure and Efficient Verification: The new method ensures a significant reduction in fraud risks by relying on genuine IC chip data instead of relying solely on visual confirmations.
2. Continued Use of Existing Technology: By integrating this new service, institutions can utilize their current iPads, which streamlines the transition to compliance with new laws without additional costs for new hardware.
3. Enhancing Customer Experience: Clients can now complete identity verification procedures without queuing, thus reducing overall wait times in branches.

Future Developments

Hitachi plans to further strengthen its partnership with Cybertrust to broaden the deployment of this eKYC service across various sectors, including public institutions. By potentially expanding support beyond iPads to other tablet devices, Hitachi aims to enhance non-contact transactions across banks and other financial bodies, boosting convenience for users.

For further details on the eKYC Support Service by Hitachi, visit Hitachi’s official site.

About Hitachi

Hitachi is an innovative technology provider that focuses on the realization of a harmonious society through digital systems and services, energy, mobility, and connected industries. By leveraging its core technology called Lumada, Hitachi seeks to create value from data, helping to address societal challenges. In fiscal year 2024, Hitachi expects to generate revenues of approximately 9,783.3 billion yen, employing around 280,000 people worldwide in 618 consolidated subsidiaries. More information about Hitachi can be found at www.hitachi.co.jp.

About Cybertrust

Cybertrust is Japan's first commercial public key infrastructure (PKI) provider, offering trust services rooted in authentication and security technology since 2000. Cybertrust focuses on building reliable services across various platforms, catering to emerging areas like IoT. Dedicated to establishing trust in every aspect of business interactions, it strives to create a safe and secure society.

The names of the companies, products, and services mentioned in this release are trademarks or registered trademarks of their respective owners.