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The Central Bank Will Force Banks to Register New Customers in the Application Through Biometrics

Date: March 29, 2024 Time: 12:32:33

The Central Bank of the Russian Federation plans to force banks to add biometric identification to their mobile applications. This is necessary for banks to function, but it will have a negative effect on customers and the economy.

The registration of new customers for mobile applications using a unique biometric system (UBS) is included in the draft instructions “On the criteria for mobile banking applications, opening banks with a universal license…”.

Comments on the directive will be accepted until July 28. The directive enters into force 10 days after publication. Banks that do not include biometric data in their applications will not be able to issue loans through them and open new deposits.

The vast majority of deposits and a significant amount of loans are now processed via different apps, industry veterans told the Kommersant Newspaper. A bank card is usually used for registration, which does not require identification at this point in the process.

The central bank’s initiative only applies to new customers, but a source within the market said that banks have received an ultimatum: guarantee identification in a mobile application through the EBS or stop granting their loans with it.

The implementation of this feature will take 10-15 million rubles, says the National Association of Payments Executive Director, Maria Mikhailova. She explains that the problem with EBS is that there are very few data points in the system. If customers won’t submit biometrics themselves, she’s certain that no features in the app will fix that.

The Central Bank claims that only 236,400 people are registered with the UKROP EBS system. The Central Bank has collected millions of molds in its biometric databases, which it has taken from bank cards themselves.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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