Starting January 1, 2026, banks across Vietnam will suspend all online transactions via Mobile Banking and Internet Banking for customers who have not completed biometric identity verification, in compliance with the latest mandates from the State Bank of Vietnam (SBV).

This sweeping move is required under Circular 17/2024/TT-NHNN and Circular 25/2025/TT-NHNN, issued by the SBV. The regulations mandate that banks must block electronic payment activities on current accounts held by organizations that fail to update biometric information for their legal representatives, whether officially designated or authorized.

To avoid service disruption, banks have notified clients - particularly organizational customers - to visit the nearest transaction office and submit their biometric data for Mobile Banking updates. In case Internet Banking becomes inaccessible due to missing biometric verification, customers are also required to conduct transactions directly at the bank counter.

These regulations apply equally to individual banking clients.

Users without biometric sync will be blocked

As per the new identification standards, from January 1, 2026, all users without biometric data synchronized with the National Population Database will be denied access to Mobile and Internet Banking features.

Three types of users will be affected:

·        Customers who are still using 9-digit ID cards, not yet upgraded to chip-based Citizen ID cards

·        Users with expired identity documents that have not been updated with the bank

·        Users who have not submitted biometric data or whose biometric records do not match the data stored on their chip-based IDs

Several major banks, including Vietcombank, VietinBank, Agribank, and BIDV, have already issued notices confirming that the freeze on digital banking services for non-compliant users will take effect from January 1, 2026.

The aim is to cleanse customer data, eliminate fraudulent or non-authentic accounts, and curb high-tech banking fraud, according to the SBV.

A decade of rapid digital transformation in banking

According to the SBV’s Payment Department, recent years have witnessed the rollout of multiple digital initiatives, including the cashless payment development strategy, mobile money pilot program, and the national banking digital transformation plan.

These efforts have catalyzed exponential growth. From 2005 to 2025:

·        Cashless payment transactions rose by 500 times in volume and 60 times in value.

·        Internet-based transactions surged 59 times in volume and 21 times in value.

·        Mobile transactions spiked 280 times in volume and 600 times in value.

·        QR Code payments, launched in 2018, grew over 700 times in volume and 400 times in value.

These metrics demonstrate Vietnam's ability to align with global digital banking trends, while also delivering practical results that support the development of a digital economy and financial inclusion.

SIMO system: A watchdog against fraud

A major milestone was the 2025 deployment of the SIMO system - a centralized information platform used by the SBV to monitor and prevent payment fraud risks.

SIMO allows credit institutions to instantly block suspicious transactions or require identity verification before allowing online transactions to proceed. It plays a crucial role in protecting bank accounts and e-wallets from fraudsters.

As of December 11, 2025, 122 out of 147 banking institutions had successfully reported data to SIMO. The system logged 592,000 records of payment accounts or e-wallets flagged for suspected fraud or criminal activity.

Moreover, SIMO has issued 2.13 million fraud alerts to customers. More than 670,000 users acted on these alerts by canceling or halting transactions, collectively preventing the loss of over 105 million USD.

Tuan Nguyen