Remote Bank Identification: How It Works


Remote identification in banks has been successfully operating abroad for over 20 years, now it has been launched in Ukraine

We analyze remote identity in banks: how it works in other countries and what will happen in Ukraine

In Ukraine, remote detection mechanisms have been in operation since 28 April during the implementation of the new regulation on the conduct of financial monitoring by banks. The projection of the system is a significant advancement in the operation of the system. Remote identification literally allows you to move into the next phase of banking sector development – remote, but full provision of services.

Banks had the opportunity to expand the circle of consumers, as not all have the physical ability to travel to branches. In smaller settlements, the bank may not have any representative offices, and it is often difficult for Megacity residents to take time off between work days. The transition to “banking udalenka” will solve all such difficulties.

The simplification of access to banking services will make the banks’ struggle more heated for customers, as changing the bank has become much easier now. Healthy competition, as you know, the quality of services develops – a good bonus for innovation.

But, the main plus, is that the banking sector is not standing still. After testing remote identification in banks, the system will be implemented in other areas where customer identification is necessary: ​​first, it applies to insurance companies, medical institutions and business floors. Against the backdrop of the introduction of “state in smartphone” and digitization of services, the banking sector seemed much more stable.

We analyze remote identity in banks: how it works in other countries and what will happen in Ukraine. Photo: Working Solutions

International experience

For European countries, remote detection systems are no longer a novelty. In Estonia, the system has been launched at the state level and has been operating successfully for 18 years. In addition, Estonians introduced their own version of the system, creating a special ID-cart for identification, which allows you to sign documents on the network, remotely the services of banks and even That uses the vote.

In New Zealand, things came out on the other side – for this, an agency was created in the country that collects and stores the data of the New Zealand people in electronic form. To conduct banking processes remotely, you just need to connect to the agency’s online portal and verify your identity.

The UK, Australia and Nigeria use information from remotely open accounts or databases of other government agencies based on data from the credit history. Meanwhile, in India, due to the number of residents, they introduced an increasingly biometric remote identification developed for this largest base system, which already serves more than 1.1 billion users.

Most countries agree on one thing – the pace of modern life needs to eliminate unnecessary nuisance by visiting branches, and technology already allows for a certain level of data security.

How does it work in ukraine

From 28 April, banks can remotely identify all new customers. For Ukrainians, who are already serving in a financial institution, the system will come in handy when examining any scheduled data that all banks conduct from time to time.

We analyze remote identity in banks: how it works in other countries and what will happen in Ukraine

To complete the process, you have to contact the representative of the selected bank through the video link. What to do next – What type of documents a customer depends on. If we are talking about a good old paper passport, this will require a visual evaluation using a webcam (which should check the employee as well as live, photo and passport data). You will also need additional verification using BankID NBU or electronic signature. Alternatively, the customer will only be screened through the credit bureaus.

If the customer has documents for a new sample – a biometric passport or an ID card – bank employees will be able to read the required information directly from the underlying chip. A visual evaluation of the document will also be conducted. To collect the necessary information, banks can not only apply to the registers of legal entities and individuals, but also use other sources.

It would be easy to keep an eye on the holders of new documents, but in fact, checking documents through video communication is not very different from the normal procedure in the department, where additional verification may also be required.

The new system also provides for remote identification without the use of video, but this option has its limits – the total balance on all customer accounts in the bank should not exceed 40 thousand UAH, and a limit of 40 thousand UAH per month and 400 thousand UAH per month will be levied on all customer functions. year. In addition, the client should send copies of identity documents and your photo along with the documents provided.

Furthermore, without video communication, you can transfer a symbolic amount from any of your old accounts to a different account in a new bank – just to identify yourself during the process. Well, or read data from an ID card or biometric passport independently using a smartphone.

Read: How to protect personal data on network: Top 5 tips


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