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THE CENTRAL BANK OF THE RUSSIAN FEDERATION TOUGHENS CONDITIONS FOR ONLINE LENDING

For online loan you will need to register on the portal “GOSUSLUGI” (“Public Services”)

The Central Bank proposes to carry out the identification of online borrowers through a Unified system of identification and authentication (ESIA) – such amendments the regulator is preparing for the law “On credit histories”. The bill is not yet introduced in the state Duma, but the Central Bank has sent a document to banks and credit Bureau. The representative of the Central Bank confirmed that the regulator is preparing amendments.

The document suppose, that banks will be able to identify borrowers without the latter having to visit a branch. Data received electronically, banks will be able to confirm in the ESIA, as well as in state agencies, for example in the Pension Fund of Russia and Federal Fund of obligatory medical insurance. Without identification of borrower banks will not be able to access his credit history, and then the client will have to come to the office.

But banks fear that the innovation will complicate the identification of citizens. At present different methods are used, for example, SMS-authorization, scratch cards, electronic encryption certificates, records of telephone conversations with borrowers and others.

Due to the innovations part of the borrowers may stop apply for online loans, the bankers fear. In addition, the amendments involve technical challenges due to the complex integration of the website services, banking systems and Bank credit histories. The infrastructure needs to be modified.

At present more than 47 million people are registered in the ESIA.

However, if synchronization of all systems will be possible, remote authentication will allow banks to process credit applications faster and fully online, eliminating the human factor. Therefore, if the proposals are implemented, they will be the driver of real growth in turnover of the online stores, perhaps more than 10% per year. The demand for consumer credit just shows recovery in the second quarter of 2017.

Today, there are two types of users of public services. The first are those who self-register on the portal and can get simple services — for example, to learn about the penalties for violating the traffic rules. The second type of user is verified. They additionally passed the identification in special centres, the offices of “Rostelecom” or the offices of “Mail of Russia”. Such users can use all the features of the site such as the remote apply for a passport. The Ministry of communications does not exclude that verified users will be able to use when applying for a loan, their online account, previously confirmed in the MFC or Rostelecom.

Of course, the new identification scheme, especially initially, will be accompanied by certain difficulties, but eventually it will become accessible and convenient for the customers of banks and MFIs due to its speed. It also has a positive impact on collection business – creditors will transfer more correct, accurate and complete data on debtors to the collection agencies.

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