News Resource: Central News Agency
Translated by Authme
The startup company Authme sees great opportunities in digital identity verification, initially targeting the high-standard financial industry. They have successfully secured LINE Bank, a pure online bank, as their first client. In the future, they hope to convince financial institutions to use even higher levels of security for identity verification, positioning themselves as the most robust identity recognition tool. However, this may involve regulatory changes that will require extensive communication.
Authme’s co-founder and CEO, Andy Lee, explained during an interview with Central News Agency that he recognized the pain points in digital identity verification while previously involved in a cryptocurrency exchange startup. As a result, he shifted his focus to developing AI-based automated digital identity verification technology. The team also won the championship in the first Regulatory Technology Hackathon organized by the Financial Supervisory Commission.
Andy, who has prior experience collaborating with the financial industry, mentioned that after founding Authme, they decided to initially target the most law-abiding and cybersecurity-focused financial sector. If they can secure orders from this sector, there will be fewer market doubts, making it easier to gain acceptance in other industries. He likened this approach to Tesla’s initial focus on sports car models.
In 2019, the team crossed paths with LINE Bank during the AppWorks accelerator event. At the time, LINE Bank was awaiting approval for its pure online banking license and was exploring various financial technologies. Financial institutions require real-name authentication services, and banks need to focus on their core systems, so they may seek strong partners for other aspects. Authme’s digital identity verification solution, as demonstrated by the team, was precisely the capability they needed.
Andy recalled that LINE Bank’s General Manager, Huang Yi-Meng, quickly organized the first meeting personally. Subsequently, after more than a year of conceptual verification (PoC) and discussions, Authme’s technology stood out in the public selection process, and their facial recognition anti-counterfeiting technology was integrated into the current digital customer identification (eKYC) process.
In the face of these challenges, Andy remains pragmatic. Implementing a completely secure verification method may not always happen in a single step. Additionally, it may involve modifying existing regulations and processes, which requires collaboration and communication among multiple parties.
As of the end of September this year, LINE Bank has reached 1.31 million users, making it the third-largest digital deposit account provider, with Authme’s technology providing a strong foundation for its success. Reflecting on their collaboration, Huang Yi-Meng mentioned that the ever-changing financial industry regulations required determination from both teams, saying, “Without the team’s persistence, we might not have reached our current approach.” His tone conveyed a sense of affirmation.
Andy stated that collaborating with LINE Bank has indeed helped expand their business. Currently, Authme’s digital identity verification services have been implemented in 3 to 4 financial institutions, including LINE Bank. Technologies like facial recognition anti-counterfeiting can be applied in areas such as online account opening and remote insurance underwriting for banks. There are currently 3 to 5 ongoing PoC projects with financial institutions, as well as engagements with large global cryptocurrency exchanges and third-party payment brands.
In addition to expanding their current business, Authme has many ideas they are eager to realize, with the goal of making digital services more secure and convenient.
Andy pointed out that there is still significant room for improvement in the use of chips for identity verification in Taiwan. For example, while national IDs are commonly used documents, there have been reports of potential forgeries. In contrast, the chip inside a passport stores photos and related information with data that cannot be tampered with, making it a document with a higher level of security. Currently, banks in Taiwan primarily use national IDs for account opening, not passports. Authme possesses passport chip verification technology, and Andy mentioned that they will strive to encourage financial institutions to use passports as the strongest form of identity verification in the future.
Looking ahead, Andy mentioned that the past two years have seen some impact on their international market expansion due to the pandemic. However, Authme is now offering both project-based and cloud SaaS (Software as a Service) models, which have the potential to break geographical barriers. Starting from next year, they hope to establish a solid presence in Taiwan and actively expand into the Japanese and Southeast Asian markets through the SaaS model.
