Russian banks plan to issue loans using biometrics

A number of Russian banks look into issuing loans at ATMs using biometric data.

In particular, banks DOM.RF and Zenit are discussing such a perspective, RG reports.

Evgeny Shitikov, head of retail products at DOM.RF bank, says the company is exploring the possibility of implementing this functionality roughly in the second quarter of 2022. A number of banks will launch respective pilots next year, he added.

“Technologically, operating an ATM is no different from operating any other device - the same data protection, the same remote channels… The main difficulty that credit organizations will face is the re-equipment of ATMs for taking biometric samples,” said Chairman of the National Council for Financial Market Andrey Emelin. Another obvious technical challenge is a low noise level required for voice recordings and a high light level for taking photos, the expert pointed out.

However, there is no reason to believe that biometrics will fully replace traditional channels for obtaining loans, says Yegor Krivosheya, head of research at the Center for Research in Financial Technologies and Digital Economy at SKOLKOVO-NES. However, with the growing initiatives to create a common digital profile and to boost digitalization in all areas, the initiative may be successful in the near future.

The popularity of biometrics-based loans will depend on the results of the experiment. “If it brings an actual influx of customers, other banks may adopt this practice,” the analyst said. “Meanwhile, the major banks already widely apply biometrics in various products, so it is highly likely that they can quickly adapt innovation".

Source: RG

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