ABA Bank Enhances Its eKYC Solution by Reducing Customer Acquisition Cost and Increasing Conversion Rate with Regula's Identity Verification Technology

ABA Bank has been the largest Cambodian commercial bank for the last three consecutive years (2021–2023) by total assets, loans, deposits, and profitability, according to the National Bank of Cambodia's Supervisory Reports. The bank is recognized as a pioneer in delivering convenient, user-centric, and innovative digital financial services in the Kingdom.

One such innovation is the ABA Mobile banking application, introduced in 2015, which became Cambodia's first-ever full-scale banking app. Over time, the app has continuously developed, becoming the most popular banking application with a large user base. However, ABA Bank continued seeking new opportunities for growth while keeping the onboarding process secure for the bank and streamlined for end users.

To enable Cambodians to open their first bank account remotely using only smartphones, ABA Bank introduced the country's first fully automated electronic Know Your Customer (eKYC) solution in late 2020 for onboarding new clients through the ABA Mobile app. This advancement made banking products and services more accessible to Cambodians from anywhere, contributing to financial inclusion.

Challenge

As part of its continuous development, ABA Bank faced challenges in further enhancing user data verification during onboarding via eKYC. The bank needed to overcome the following challenges to ensure that the eKYC process was carried out efficiently:

• Replace the simple Optical Character Recognition (OCR) technology used for extracting text data from Cambodian National ID cards (NIDs) with sophisticated technology capable of accurately reading and extracting data from the Machine-Readable Zone (MRZ) of NIDs.
• Ensure the solution can detect tampered documents and other data manipulations, enhancing security and compliance.
• Reduce human involvement and manual checks of the submitted NIDs during the eKYC process, thereby improving efficiency and reducing the potential for human error.

The bank searched for a reliable solution that would seamlessly integrate with its existing systems and digital infrastructure.

Solution

After a thorough evaluation of multiple solutions, ABA Bank decided to choose Regula Document Reader SDK. This solution stood out for its accuracy, speed, cost-effectiveness, and seamless integration with ABA Mobile.

Implementing Regula Document Reader SDK made the new client onboarding process faster and smoother. To start the procedure, the user takes a picture of their NID or passport with a smartphone camera. If the picture is of poor quality, Regula's solution notifies the user to retake it.

Next, the user undergoes face matching and face liveness checks on ABA Bank's platform. Upon completing these checks, the customer can open an account at ABA Bank.

Result

The whole project of implementing Regula Document Reader SDK, from initial testing to the go-live stage, took just one month. Throughout the process, ABA Bank received extensive support from the Regula team and leveraged the detailed developer documentation to ensure smooth and quick implementation of the solution.

The results were outstanding:

• ABA Bank significantly improved its conversion rate for digital onboarding via the mobile application. The conversion rate for mobile account opening increased by 78%.
• The customer acquisition cost decreased by 65%.
• The team tasked with verifying data provided by customers via ABA Mobile was freed up to tackle other important tasks, leaving the job to Regula's solution and reducing operating costs.

Implementing Regula Document Reader SDK has significantly enhanced our client onboarding processes. Our developers integrated the solution efficiently during a short period, thanks to the clear documentation and the supportive Regula team. The app's enhanced user experience and new interface during eKYC have been positively received. This has resulted in a smoother account opening process for our customers and increased confidence in the data received during the eKYC process.

—Zokhir Rasulov, Chief Digital Officer at ABA Bank