The Central Bank of Russia will consider the use of ATMs for video identification of new customers. The proposal to test the technology came from BFS, a distributor and manufacturer of ATMs. Artem Zhilonov, CEO and co-owner of BFS, told RBC about this.

According to a representative of the Central Bank, the final decision on the use of video services has not been made yet. He went on adding that the Central Bank is exploring various options for developing approaches to identifying clients of financial institutions, including digital technologies.

In turn, Zhilonov noted that the company is at the final stage of discussing administrative issues with the Central Bank to start testing the technology.

Currently, in accordance with the anti-money laundering legislation, banks can carry out video identification of customers in their personal presence at the branch or using the Unified Biometric System.

“We turned to the Central Bank with a proposal to test the use of ATMs with our video identification solution. Our video communication session is carried out through a device that is completely in the security loop of the bank, and the passport that the client provides is verified through a special tool that checks it up to six projections, which is even safer than when the operator simply brings it under a blue lamp,” said Zhilonov.

According to him, the relevant software can be installed in ATMs of any manufacturers. The company also plans to independently produce Russian ATMs, which will have a printer, a document scanner, a passport verification module, a handset for getting in touch with bank employee, a dropbox for signed documents, card issuing modules, etc.

The banking market participants first suggested that the Central Bank test the video communication format to identify new customers back in 2020 amid the COVID-19 pandemic and the introduction of the self-isolation regime. However, it involved using the customer’s laptop camera, and the Bank of Russia saw fraud risks, including passport forgery, use of deepfake technology (replacing a person’s image) or professional makeup.

According to Zhilonov, ATMs with video identification can be used in two business models: “Some banks have huge branch networks and significant costs, they could be reduced, and instead such devices could be installed. And there are some banks that don’t have a large network, but they would like to “reach out” to customers throughout the country (using video ATMs. - RBC)”.

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