Fingerprints, mobile services and other substitutes for bank cards . Future prospects

In branches of large Russian banks began to install "smart" ATMs. They can not only answer users' questions, but also issue money without plastic cards. All you need is a fingerprint or retina.

The new ATMs combine not only innovative cash dispensing, but also other new features. Among them are public services, for example, registration with the tax authorities.

Experts have been saying for a long time that ATMs need to be changed. Most of those 300,000 cars that today are in offices and shopping centers are morally and physically obsolete. Some credit institutions have ATMs decommissioned in other countries, explained Oleg Ivanov, Vice President of the Association of Regional Banks.

In Russia, there are already machines for issuing money through which you can withdraw cash from your bank account without a bank card, using only a phone and a QR code. You just need to connect to your personal account at an ATM using your login and password, request the required amount or make a payment. In the same way, you can not only withdraw money, but also put it into your account, open a deposit. But there are still few such "smart" machines.

In addition, a QR code and a mobile phone cannot completely replace a plastic card. So far, this is an auxiliary option to help with money a client who has lost a card and is waiting for its reissue.

On the basis of some ATMs, mini-offices are created, where staff is not particularly needed. You can come there at any time of the day or night.

"It can be one or several ATMs that are installed indoors. The client receives both standard services, and can use an ATM as a personal account, - says Elena Mokhnacheva, vice president of one of the Russian banks with state capital. - The screen of the ATM-office itself becomes larger, it is convenient to work on it. Sometimes it's even two screens. On one - the interface of a personal account (as on a home computer), and on the second - you can receive a client consultation of the bank.

Such a machine is more expensive, but it will pay off, the bankers are sure. First of all, by reducing the cost of remuneration of employees, since the client, if necessary, talks with them remotely.

And, in order to eliminate the risk of fraudulent transactions, credit organizations just thought about equipping ATMs with identification functions using a fingerprint or retina.

But first, banks will have to obtain the consent of citizens to use their biometric data, then seriously upgrade their infrastructure in order to transmit this information. Credit institutions that have installed such machines have already gone through this procedure.

You can submit your fingerprints at the bank branch. In the same place - consent to the use of personal data

Customers who want to use this feature will also need to formally declare their desire. It is necessary to come to the bank office and draw up a special agreement by submitting fingerprints.

In the world, recycling ATMs with a closed cash circulation, which do not need frequent maintenance, are gaining more and more popularity. The client can receive cash from the funds in the ATM that were previously deposited into it by another client of the bank. This allows banks to save on collection. The introduction of a closed cash circulation makes it possible to reduce the cost of ATM collection by more than 30 percent, Elena Mokhnacheva noted. But so far, even such obvious ATMs with the cash-in function have been counted twice, Ivanov noted. One such ATM is quite expensive, about 50 thousand dollars.

Non-cash transactions in Russia have a great future, Oleg Ivanov is sure. You can already pay for goods and services using your smartphone. It would be nice if it could be used to transfer funds from account to account.

It is still unclear how quickly the strategy for the transition to cashless payments will be implemented in Russia. A few years ago, the Ministry of Finance said that as soon as Russia launched its own payment system, the infrastructure to receive it would develop. bank cards, then it will be possible to return to the issue of avoiding cash. It was announced that in the first half of next year it is planned to start mass emission of Mir cards with the release of 40 million. They will be given to state employees and students. This means that we can start talking about taking measures to reduce the share of cash, Ivanov said.

By the way, the Federal Antimonopoly Service may initiate proceedings against Visa and Mastercard. The application, which was received by the Federal Antimonopoly Service (FAS) of the Russian Federation from the Association of Trading Companies and Commodity Producers of Electrical Household and Computer Equipment (RATEK) with a complaint about payment systems, is under consideration," Lilia Belyaeva, deputy head of the financial markets control department of the FAS, told TASS.

Recall that back in late November, during a joint meeting of the FAS Presidium and the Presidium of the Board of Opora Rossii, the head of the organization, Alexander Kalinin, expressed indignation at the size of the service fee charged by Visa and MasterCard payment systems from businessmen. According to him, this is 1.5 percent for servicing large businesses and up to 2.5 percent for small businesses. “There is clearly discrimination here. What to do about it?” the head of Opora Rossii asked then.

This technology is already used in Promsvyazbank and Home Credit, representatives of these credit organizations said. Authorization in mobile banking is tied to the fingerprint scanner in Apple phones. Sberbank introduced customer identification using Touch ID technology back in 2014.

According to Eldar Murtazin, a leading analyst at Mobile Research Group, there are about 14 million iPhones in Russia. Of these, 5.8 million devices support Touch ID.

Biometric identification of clients based on a face recognition system is also used in some Russian banks. In 2015, it was introduced by Leto Bank (now Post Bank), said a representative of this credit institution. The biometric parameters of new Post Bank customers are compared with the existing customer base, and also compared with the base of fraudsters, he says. The system is used to counteract external and internal fraud - when issuing loans and when authorizing bank employees. “It quickly paid for itself, and its use allowed the bank to save about 100 million rubles,” said a bank representative.

A similar pilot project has been launched in three Moscow branches of Otkritie Bank, where a facial recognition camera is built into the electronic queue terminal, Alexei Blagirev, the bank's innovation director, told RBC.

In 2016, Sberbank implemented a series of pilot projects involving the use of biometric technologies in various service channels and use cases, a bank representative told RBC. The bank also accredited VisionLabs, Comlogic, Prosoft Biometrics and Fujitsu Technology Solutions as providers of facial recognition systems.

Binbank is negotiating with potential suppliers of systems for biometric identification of customers, said Pavel Chebotarev, head of the bank's center for innovative development.

Several biometric technologies are now being tested by Raiffeisenbank, Sergey Grib, head of the bank's integrated risk management department, told RBC.

The inclusion of biometrics in internal processes and in the customer service sector is being actively developed by Rosbank. "We launched important project on incorporating biometric data into our service systems. This was preceded by a number of pilot projects, which gave a worthy result in reducing the number of frauds at the stage of analyzing loan applications,” said Elena Bronnikova, Change Management Director at Rosbank.

The Central Bank is preparing for biometrics

The Bank of Russia, meanwhile, has begun the next stage of work on a unified biometric database - the development of security issues and the legal foundation for remote customer identification, RBC was told in the press service of the regulator. Pilot testing of the biometric identification system, which will involve several retail banks, is planned by the Bank of Russia for 2017.

The project was developed by the Central Bank together with the Ministry of Communications and Rosfinmonitoring. As RBC previously wrote, it will allow abandoning the physical presence of the client when opening an account with a new bank. “You can come to one bank at any end of the country, confirm your account [at Gosuslugakh], and then move to Moscow and, if necessary, open a bank account remotely or send a loan application in the future,” she said. forum Finopolis 2016 in October, Deputy Chairman of the Central Bank Olga Skorobogatova.

The system will work like this. After full-time identification of the client in the bank, a corresponding mark will appear in his profile on the "Public Services". If the client decides to use the remote services of another bank, then this bank, having received permission from the user to access his personal data on the State Services, will be able to identify his personality; such identification will be tantamount to presenting a passport.

The specific dates and participants of the pilot project have not yet been determined , follows from the commentary of the Central Bank provided by RBC.

The pilot project of the Central Bank will take 12 months, according to Alexander Khanin, CEO of VisionLabs, a software company for facial recognition. Clients of participating banks will be able to “register” their faces (take a picture to add a photo to the reference database) so that these images can be used for remote identification. Thanks to her, clients will have access to current accounts, opening deposits, obtaining loans, transfers and payments, Khanin lists.

Future in faces

Despite the interest of banks and financial authorities in biometrics, its implementation will not become widespread in 2017, RBC interlocutors say. In Russia, this method of identifying customers may become widespread in 3-5 years, believes Alexander Ermakovich, head of the online and mobile banking protection department at Kaspersky Lab. “We should not forget about the privacy issue - not all users are ready to share data such as a fingerprint or an eye scan with a bank,” he adds.

According to Yermakovich, today biometric identification methods cannot be called 100% safe. “The technology is new, not all developers know how to apply it correctly. Attackers, in turn, begin to look for vulnerabilities in it even before being introduced into mass products, ”the expert warns.

There is no talk yet about the complete replacement of other identification methods with biometrics, Pavel Gurin, member of the board of Post Bank, agrees. At the same time, he believes that the current methods of identification can be strengthened by biometric ones. “For example, the “login-password” pair, which has become familiar when identifying a client, will not soon become a thing of the past. But for transactions with higher limits or more risky, additional biometric identification can be used as a “confidence effect enhancer,” says Gurin.

With the participation of Anna Balashova

Leto-bank celebrated a year of its work on the credit market of Russia. This event was dedicated to the event held on June 13, 2013. The first employee of Leto Bank was hired on June 1, 2012, he became the president-chairman of the board of the bank Dmitry Rudenko, which he announced to journalists invited to the Summer New Year party.

A subsidiary bank of the VTB Group, Leto-bank, focused on mass lending to the population, entered the broad market in the fall of 2012, and the volume of loans for the first 1.5 months of operation exceeded 100 million rubles. During the first year of operation, the bank's loan portfolio grew to 7.3 billion rubles, and by the end of this year the bank intends to increase its portfolio to 18 billion rubles. During the year of operation, the bank opened 181 client centers in 6 federal districts of Russia. The bank also signed more than 10,000 agreements with shops, where it is now possible to get a bank loan for goods. In 2013, the bank intends to continue actively developing its network, and by the end of the year it will have 250 client centers, Dmitry Rudenko is sure.

The bank team was tasked with building a customer base of several million people in a few years, creating a sales network of at least 1,000 branches and several thousand points of presence in stores. “The bank's shareholder, VTB Group, looks positively at our plans and is not even surprised when we exceed them. So, in a year we exceeded our own growth plan by at least 2 times,” said Dmitry Rudenko.

The bank's managers also spoke about the plans for the development of the credit institution. A pilot project for identifying customers using biometric data is already operating in 10 Leto-bank service centers in the Central Federal District, the director of risk for Leto-bank said on the website. Olga Stepanova. At the stage of registration of the application, the client leaves his fingerprint in the bank. Bank employees explain to clients who applied to the bank for loans that this is done so that intruders cannot use the client's data, and not for the purpose of tracking the bank's clients. According to Olga Stepanova, fingerprint identification of a client is necessary to reduce fraud in the credit sector, as it often happens that in some companies, when applying for a job, a photocopy of a person’s passport is removed even at an interview. Such cases are especially frequent in the regions.

“Then a person is not hired, and this copier “walks” around the banks, and according to the person’s data, loans are issued without his knowledge,” Olga Stepanova noted. As part of the project, about 600 people have already given their consent to the delivery of biometric data to the bank, and bank customers do not particularly have to be persuaded to leave a fingerprint, as they are aware of the importance of this information. The project started in April of this year, its data will be summarized at the end of summer 2013. Subsequently, a client who has left a fingerprint in Leto-Bank will have the opportunity to take a new loan without even presenting a passport, since a passport can also be lost, simply forgotten at home or forged. But you can’t change the unique pattern of capillaries on your finger, explained the first deputy board of the bank Georgy Gorshkov.

Also, based on the results of this experiment, Leto-bank will evaluate the prospects for introducing ATMs into practice, which will issue money to bank customers without entering a PIN code - also by scanning a fingerprint.

The fact that the bank began testing ATMs, in which, when applying for money, customers will be accompanied by the option of passing fingerprint identification, Georgy Gorshkov announced at the presentation of the first Moscow client center of Leto-Bank in November 2012. Then Gorshkov noted that the widespread use of the new technology of the bank can be expected from July 1, 2013. Now the timing of the introduction of innovations has shifted somewhat.

The banker noted that various options for accessing the account are being worked out: using a fingerprint, using a comparison of the vein grid and scanning the retina. But preference was still given to scanning a fingerprint, as the simplest and most proven technology in practice. At the same time, he said that the identification procedure would be no more difficult than giving a fingerprint for a visa to the United States or Britain. Georgy Gorshkov explained to the site that the bank is ready for the fact that some of the clients will not be “burning with desire” to leave their fingerprints to the bank, since such a procedure in modern society is associated with getting into the database of law enforcement agencies. But at the same time, the deputy chairman of the bank noted that now the Russians leave a lot of information about themselves in social networks although no one is forcing them to do so. That is why he believes that after talking with bank employees, some of the clients, especially progressive youth, will still agree to the terms of the credit institution, as they will see for themselves in this an additional guarantee of protecting funds.

From a security point of view, this is certainly a useful innovation, especially in the face of an increase in card fraud, since the introduction of a PIN code and a fingerprint is essentially a 99 percent guarantee that the customer's identification will be correct. Innovations are always good, as for issuing loans and identifying customers through this function, everything will depend on where the fingerprint data bank is stored and who can use it, the head of the customer service department of Lanta-bank believes Olesya Luhtay. She notes that all innovations that simplify identification have a future, and the more people are informed about this, the faster we will get used to modern technologies that make our lives easier.

The prospects for this technology are doubtful, starting with how justified the cost of upgrading equipment, and ending with the position of approval by customers, the director of the department of economic and information business protection of Rosgosstrakh Bank believes Artem Gonta. He adds that such technologies are already being used in some countries - Switzerland, Germany, France, Japan, India, Brazil and some others - but most experts assess their effectiveness as low, given the high percentage of identification failures, as well as the risks associated with an attack on citizen-users of card accounts, when the cardholders simply cut off their fingers to attach them to the identifier. “The system of biometric identification of customers should work globally, and not in a single bank. The necessary infrastructure must be created single base data for storing fingerprints, legal issues should be resolved, since the legislation does not clearly regulate that banks can identify customers biometrically,” the banker notes.

A few years ago, a bank tried to implement iris identification in an Asian country. Not only was the new system very costly, but it was not widely adopted due to the fact that it was not well received by customers. “The same is possible in this case' warns Gonta. Thus, he believes that this innovation will be very costly, and for it banks need special equipment, knowledge, keeping fingerprint files of clients, specialists in this field are needed, and they also need to train bank employees and the like.

But Georgy Gorshkov recalled that Leto-bank is a credit institution that never follows the well-trodden classical path, since the classical path is too expensive for it. “We have more ideas than opportunities to implement them, but they all differ from classical banking,” he said. Some of the ideas relate to the very procedure of customer service in the bank. For example, a bank is launching banknote recycling technology in its ATMs. Now those banknotes that are issued to the client at Russian ATMs, and those that are accepted from the client using cash-in technology, are collected in different cassettes. Therefore, even if there are banknotes in the cassette where the money is collected, the ATM cannot dispense funds from the card if the money dispensing cassette is empty. And Leto-Bank is going to use a technology in which both banknotes issued by an ATM to a client and banknotes accepted from people will be accumulated in one cassette. This technology should be supplemented with a special machine checking of banknotes for authenticity, so that if a fraudster managed to “feed” a counterfeit banknote to an ATM (and the ATM for some reason took it for a genuine one), it would not fall into the hands of a respectable client jar.

The bank will also contribute to the correction of the credit history of its customers. To do this, he will recommend to each client who comes to the bank to request his credit history at the bureau, and if there are negative points in it, then the bank employees will recommend various actions for its formation. We are talking, rather, not about malicious non-payers, but about those clients of other banks who were issued credit cards, and they have debts for those cards that they often never used - for example, up to 1 thousand rubles per issue and card maintenance, noted Olga Stepanova. “The debt is small, and there is a fat minus in the credit history due to the “arrears of the debt”. We will recommend such people to pay off their debts,” the specialist said.

Leto-bank also introduced a program to encourage its customers - for those who took a loan for a period of at least six months and did not allow delays within 6 payments, the bank returns part of the rate for using the loan.

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In 2005, Alfa-Bank offered its customers the Alfa-Mobile service, which made it possible to pay for cellular communications and check the balance of a bank account through the cell phone menu. Today, such an innovation causes laughter, but then it was wow! This is how the first mobile bank appeared in Russia, and today we will see what it has learned in 11 years.

1. Ability to test the application without being a bank client

The advantage of Alfa-Mobile is the ability to thoroughly study the application without becoming a bank client. Often, potential customers can evaluate a mobile bank only after they open an account or get a card. It turns out a kind of cat in a bag.

You can download the application, click on the "Demo" button on the authorization screen and test each function as if you already have a card and accounts in Alfa-Bank. This is an honest approach.

2. Chat with the bank from the application

Support is like a reserve parachute. You rarely have to turn to it, but if the need arose, then something important happened and the service must work out as it should.

Why chat with support specialists is better than a phone call? First of all, no need to wait a few minutes for an answer: they wrote a message and put the smartphone in their pocket. Secondly, no need to listen to the silence between the operator's responses when he performs some action and asks you to stay on the line. Thirdly, you continue to go about your business, and when you receive a response, you will hear an alert.

3. Fingerprint login

Fingerprint unlock is convenient. Ask any owner of a smartphone with a fingerprint scanner if he wants to return to the archaic PIN entry, passwords and pattern drawing, and you are guaranteed to hear “no”. In Alfa-Mobile, fingerprint entry works.

4. Search for an ATM in augmented reality mode

The built-in map with ATMs marked on it is convenient and understandable not for every user, but the navigation mode through the smartphone’s camera in augmented reality mode is absolutely for everyone.

5.Windows phone support

99% of developers pretend that phones based on the Windows Phone operating system do not exist, and therefore they do not rack their brains over creating this type of application. Specialists from Alfa-Mobile did their best for all owners of Windows Phones.

6. Convenient interface with the right features

All Alfa-Mobile users can view the balance of all accounts and cards in real time, transfers between their own accounts and cards, transfers to other Alfa customers on special terms and to customers of other banks.

The application includes a personal accountant who controls expenses by categories, the function of blocking and unblocking cards, opening and closing accounts, and also allows you to pay for communications, the Internet, traffic police fines, utilities and other services with one touch using templates. If necessary, the application will generate a payment receipt in PDF format and send it to the user's email.

If you have a foreign currency account with Alfa-Bank, you can exchange rubles for dollars or vice versa from the application. This is a very useful feature for those who prefer to keep their savings in different currencies, but do not like to go to bank branches and exchange offices.

Conclusion

If you want to get the technological sophistication and customer focus of the best banks, but do not want to return your money through the deposit insurance system, then the Alfa-Mobile application is for you.

Bank manager Svetlana Pictozhite demonstrates the operation of self-service devices that accept credit cards. According to analysts, the credit limit for such a card in Moscow has approached 95,000 rubles. This is the highest figure among the regions of Russia

Banking expert Viktor Shpringel said that the top twenty largest banks have long been ready for this procedure.

The question of the need to collect biometric data has been around for a very long time. Financial institutions have been preparing for the verification procedure since last year, the expert noted.

According to bank employees, biometric data will help to cope with fraud. After all, forging documents is easy. A photograph of a client also does not give a 100% guarantee of personal identification. For example, if a person has a twin, then it is easy to confuse brothers or sisters in the picture, but the retina and fingerprints will be different. According to Springel, the procedure for taking biometric data will be comfortable for bank customers.

No need to think that fingerprints will be taken the old fashioned way: dipping your hand into ink and then rolling it over paper. Technology has come a long way. The palms will simply be scanned and the data will be immediately presented in in electronic format. You don't have to mess around, he said.

The same applies to taking data on the retina: the eye will only be photographed. Viktor Shpringel added that the main task of banks is not only to provide their branches with data collection equipment, but also to organize their safe storage.

Everything is designed so that such information is stored not only within banks, but there is a common access to it so that the client of one bank can be checked in another. This, of course, will provide convenience for employees, - said the expert.

According to him, the introduction of the procedure for taking biometric data does not mean that all Russian citizens will be urgently forced to hand over these data. Each person will be able to choose for himself: whether he wants to present fingerprints and retinas, or not. But it also remains for the bank to decide whether to issue a loan to someone who has not provided biometric data. Indeed, in this case, there is a risk of falling for the tricks of scammers. Without biometric data, it is difficult to prove the presence of a specific person in a bank.

Meanwhile, the expert noted that the majority of Russians are ready to be fingerprinted.

In any case, those who travel outside our country have already encountered it. They are no strangers, - summed up the expert.

As for the banks that are not in the top 20, they will have to pay fines if it turns out that they are not ready to implement biometric data collection.

BY THE WAY

The collection of biometric data began in the banks of the capital and other regions in July 2018. According to representatives of the Central Bank, such a procedure was carried out in 400 branches from 140 cities. The Central Bank has required all credit institutions to ensure the collection of biometric data in 20 percent of their branches by January 1, 2019. This means that employees of four thousand departments will be trained. If this requirement is violated, the financial institution will face a fine.