MFIs will check clients according to the standard – Newspaper Kommersant No. 12 (7457) of 01/24/2023

The Bank of Russia has systematized methods for verifying documents that microfinance professionals should use when issuing loans. Most large companies already use such parameters and are ready to offer additional verification methods. At the same time, negligent attitude to personal data on the part of the borrowers themselves often leads to fraudulent actions.

The Central Bank obliged microfinance organizations (MFIs) to verify the identity of the borrower according to certain parameters when issuing a loan online. In document (.pdf), published on January 23, mentions ten acceptable verification methods, of which companies in the sector will be required to use a minimum of five, and using high-tech tools, a minimum of three.

In particular, companies must check the validity of an identity document using the services of state authorities, credit history, the appearance of the person receiving the loan, the person who submitted the documents, the validity of the phone number and the card used, etc. The new rules will come into force on 23 April and, according to the Central Bank, will prevent fraud using other people’s personal data. Compliance with the requirements will be monitored by specialized SROs.

Microfinanciers actively participated in the development of the document. The standard takes into account the opportunities that are already available to the market, at least to its largest players, says Elman Mehdiyev, chairman of the board of SRO Mir. At the same time, the process of obtaining a loan for the client will remain as simple as before, he assured. The business processes of the main companies will also not change, because their borrower assessment methods already meet the standard, Andrey Ponomarev, CEO of the Webbankir online financial platform, believes.

According to the managing partner of the Veta expert group, Ilya Zharsky, the problem of illegal use of personal data when applying for microloans remains relevant. “Microfinance business models allow you to get a loan in five to ten minutes. This speed is achieved through simplified customer identification. This cannot be used by scammers. As a result, in some cases, 20% of loans are provided through fraudulent schemes,” adds Andrey Barkhota, an independent expert.

However, market participants fear that even the best technologies will not be able to protect against the careless use of personal information by borrowers.

“Even the best standard and the use of advanced technologies is not enough if, until now, a significant number of Gosuslug users are in no hurry to enable two-factor identification and thus allow the interception of accounts and the receipt of funds on their behalf,” Mr. Mekhtiyev explains.

In addition, the new requirements may cause difficulties for small companies that will need investments to implement them, says Sergey Vesovshchuk, CEO of MoneyMan. And companies with a low level of information and technical infrastructure may leave the microcredit market, believes Andrey Petkov, general director of the MFC Chestnoye Slovo (see “Kommersant” dated December 29, 2022).

For more effective fraud prevention, it is worth thinking about changing the legislation in the field of personal data, market participants believe.

“If MFIs had access to the information of mobile operators and banks on the ownership of telephone numbers and cards, this would significantly reduce the number of frauds. We can check that the card specified in the application is active, but we do not know who owns the account linked to it, because this information is a bank secret,” Andrey Ponomarev explains.

Mr. Vyesovshchuk names integration with the state services “Digital Client Profile” and “State Key” among possible additional anti-fraud measures.

Polina Trifonova, Yulia Poslavskaya