Biometric Data to make Loan Process go Faster

Biometric Data to make Loan Process go Faster


Biometric data will now be included in the mobile applications of banks by order of the Central Bank of Russia, according to the drafting instructions ‘On the criteria for mobile applications of banks with a universal license.’

That is, banks will now be able to issue loans and open deposits through the application only when it will be able to register new customers using data from the Unified Biometric System (UBS.)

This document will come into force 10 days after its publication. As for the relevant comments, they will be accepted until July 28. It should be noted that this requirement does not apply to banks that will disable their mobile application within six months after the publication of the document.

Today, most loans and deposits are processed through mobile applications, and a bank card is mainly used to register them. Identification is not required, as the credit institution already has all the data. At first glance, this project is more relevant for new clients, but, in fact, the banks received an ultimatum to identify clients in the mobile application through UBS or stop issuing loans through it starting from September 1. The mobile application will have to be modified to include identification through the same UBS, which will take 10 - 15 million rubles ($170,470- 255,705.)

According to the head of the National Payment Council, Alma Bayeva, “all is not right with” the security of the single biometric system, and this has repeatedly been said by market participants themselves. However, the government “really needs” citizens to share their biometric data, she said.

There is no doubt that the project ‘On Remote Identification’ will be convenient for individuals, as this innovation will allow them to receive financial services remotely and in different banks, simply by confirming their identity using biometric personal data, such as voice, face image, etc. Moreover, the development of this platform will digitalize financial services, making them more accessible to the consumer and increasing competition in the financial market. By the way, this service will also be available to disabled people.

It is noteworthy that the identification procedure is free of charge for the user. In order to register for the first time, a citizen will simply have to come to a bank that has the right to register individuals in the Unified System of Identification and Authentication (USIA) and the Unified Biometric System. Such a bank will carry out all the necessary procedures to take a photograph, record a voice sample, and send the biometric data to the UBS.

In order to receive services at the new bank, a citizen must go to the website or mobile application of the credit institution and use remote identification to receive these services. The next step is to authorize in the USIA and confirm their biometric data using a tablet, smartphone, laptop, or computer with a camera and microphone, for which they will need to download the UBS application.

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