Sberbank aims to lead Russia’s biometrics sector in years to come

State-owned Sberbank, Russia’s largest bank, is launching a range of new biometrics-based financial services in an effort to become one of the leading players in the Russian biometrics sector in the years to come.

The more active use of biometric technologies is currently one of the priorities for the bank and its head German Gref.

During Finopolis-2024, a event focused on financial innovation in Russia, Gref commented on how Russia has achieved significant progress in the development of biometrics. “We have developed entirely new payment methods that I have not seen anywhere else in the world. Currently, Russia offers a full range of options, and notably, biometric payment systems are rapidly gaining traction here, something not available in any other country.”

Sberbank plans to introduce a number of new biometric-based financial services in 2025. Probably, one of the most important projects involves the development of the bank’s own biometric payment service “Pay with a smile”. The bank launched the service in 2023, while in recent months its popularity has significantly increased with more than 900,000 biometric terminals installed in stores, restaurants, metro stations and other businesses throughout Russia, and by the end of the year their number will grow to one million. The bank expects further development of biometric payments of age-restricted goods as well, particularly alcoholic  drinks and tobacco products.

There are also plans for a single targeted solution for biometric payments for all Russian banks. Interbank bioacquiring is being developed by Sberbank and the National Payment Card System (NSPK) using Sberbank’s own infrastructure. This means that in 2025 face biometric payments will be available to clients of any bank whose cards are accepted in Russia.

Oleg Yevseyev, director of the Biometrics division at Sberbank said, “We are striving to create a service in which a citizen of our country can pay for purchases with biometrics regardless of which bank he is a client of, and we will implement this opportunity by the end of the year. In parallel, NSPK is preparing to do the same and store a database of card links with biometrics. This is a phase that we will go through together. As a result, we will receive a single target solution for all banks in 2025.”

As Dmitry Malykh, Sberbank’s senior vice-president earlier told Russian business paper Vedomosti, from its side Sberbank wants biometric payments to become routine.

“We want the technology to stop being something new and fantastic, so that everyday purchases can be made with the help of biometrics and a habit can be formed,” explains Malykh. “So far, this payment method is used by innovators –  young people under 35. I believe that with the stable development of biometrics in the next 3-4 years, the use of this technology will reach a different level in cooperation with the market, NSPK and the Central Bank.”

In general, the demand for biometrics and technologies based on it remains high in Russia at present. According to latest data, provided by Stanislav Korop, acting director of the financial technology department of the Russian Central Bank, since the beginning of the current year local financial and credit institutions have collected by 6 times more biometric data from Russian citizens than during the entire period of using biometrics in Russia.

According to data of the Russian Central Bank, by the end of September local banks processed biometric data from about 1.7 million Russians, compared to only 270,000 as of the end of the first half of 2023. Data collection was carried out by 180 banks in 12,000 branches across the country.

“We are actively continuing to collect data. Banks are launching various incentive programs for clients, showing how convenient this technology is,” says Korop. “Biometrics is being seamlessly integrated into services.”

Article Topics

banking  |  biometric authentication  |  biometric payments  |  biometrics  |  consumer adoption  |  face biometrics  |  financial services  |  research and development  |  Russia