Using biometrics for cash withdrawals without card and credit processing
The banking industry is gradually moving towards simplifying operations, but is also looking for solutions to improve security. This is especially true for credit cards, where fraud schemes are often used. In order to improve service, a number of Russian banks are planning to use biometrics to formalize loans through ATMs. This option will eliminate the need to use a card. It should be noted that this is not the first case of improvement of contactless transactions in the financial segment. Previously, two major Russian banks – Sberbank and Tinkoff are testing face recognition technology for ATMs.
However, there may be a number of difficulties in applying biometrics. Due to the fact that banks will have to store customer data, the regulatory authorities may restrict the collection of such information. However, financial institutions are optimistic and believe that this problem can be solved.
According to the proposed concept, credit through biometrics will be able to formalize not only the clients of a particular bank, but also anyone who wishes. This requires remote identification, which takes place in the Unified Biometric System. The development of such technology is engaged in several financial institutions, such as VTB, ICB and UBII.
This variant of interaction between the organization and users has also interested HOUSE.RF. It was stated that the institution plans to introduce the function of applying for a mortgage loan through an ATM. The issue of money in this case will be carried out in the office of the organization, as well as through a mobile application or courier. Analysts DOM.RF predict that by the end of this year, the share of loans that were issued through ATMs may reach 5-10% of the total amount of loans issued.
In addition, the pilot testing of technology from Sberbank and Tinkoff continues. They have installed ATMs that are able to recognize faces. Now a person who wants to withdraw cash does not need to use a card. Sberbank installed equipment in self-service offices, which removes biometric data from the faces of customers. ATMs with similar technology from “Tinkoff” are located in various shopping centers of the capital.
In 2018, Rostelecom became the only operator of personal and biometric data systems for citizens. The service was initiated by the Central Bank of Russia and the Ministry of Communications. Now the platform is in the process of testing, as well as agreeing on the legality of the use of biometric information of citizens by banks.
The program provides interaction through special communication channels, which have a high level of protection against hacking. In the future, the developers plan to use the platform to provide various public and municipal services in education and healthcare. Rostelecom has invested about 200 million rubles in the development of its biometric data system.