Beginning July 1, 2025, Vietnam’s banking sector will implement three critical changes: mandatory biometric identification for legal representatives of business accounts, the official discontinuation of magnetic stripe cards, and the activation of a regulatory sandbox for financial technology (fintech) services.
Biometric verification required for legal representatives
Customers can visit any bank branch to complete biometric verification. Photo: Nam Khanh
Under Circular No. 17/2024/TT-NHNN from the State Bank of Vietnam, legal representatives of corporate customers must provide and verify identification documents and biometric data to continue executing fund withdrawals and electronic payment transactions from their organization’s accounts.
Failure to complete this update will result in a suspension of electronic banking services, including money transfers and withdrawals.
Banks will support two methods of biometric verification:
In-person at any branch or transaction office.
Through banking apps (Vietnamese citizens only).
Required documents include a chip-based ID card (for Vietnamese nationals) or a valid passport or notarized copy (for foreign nationals). Those who are already registered as individual customers may have their data cross-referenced to avoid duplication.
Customers are advised to beware of scams - bank staff will never send links requesting login credentials, OTPs, or personal identification details.
Magnetic stripe cards officially retired
In line with government regulations, banks will cease all transactions using magnetic stripe cards, including magnetic bands on chip/contactless cards, from July 1, 2025. This change aims to enhance security during card transactions.
Customers who have not switched to chip cards are encouraged to visit any branch with their ID to convert their cards free of charge.
Unlike magnetic cards, chip-based (EMV) cards store data on an embedded chip, encrypting transaction information with a unique code for each transaction. This significantly improves security and reduces the risk of fraud and data theft.
Fintech sandbox launches for controlled innovation
Decree No. 94/2025/ND-CP introduces a regulatory sandbox for fintech experimentation. Starting July 1, the program allows entities to test innovative banking products, services, and models under controlled conditions.
Approved fintech solutions include credit scoring, data sharing via open APIs, and peer-to-peer lending. The sandbox is open to credit institutions, foreign bank branches, fintech firms, regulators, customers, and other stakeholders.
The program provides a legal framework for piloting fintech innovations and enables authorities to evaluate their impact before updating or drafting new regulations. It also aims to improve financial inclusion by making services more accessible, secure, and affordable.
This initiative reflects the government's commitment to fostering innovation in the banking sector while ensuring consumer protection and cybersecurity.
