The National Bank of Ukraine (the NBU) has added new options of using the remote identification of individuals via the Single National System for Remote Identification of Individuals and Legal Entities of the National Bank of Ukraine (the NBU BankID System), so that bank customers can receive:

• administrative
• banking, and
• other services.

The respective provisions are included in NBU Board Resolution No. 105 On Amendments to Certain Regulatory Documents of the National Bank of Ukraine dated 3 October 2018 (Resolution No. 105). This document approves the amendments to the Regulation on the NBU BankID System.

The respective amendments will allow for the use of the system as one of the instruments for identification of individuals for the purpose of provision of banking services (e.g. for opening an account).

In particular, Resolution No. 105 provides for:

• terms and procedure for connecting subscribers to the NBU BankID System, and stopping and restoring its operation, as well as procedure for use of the system by subscribers and users (individuals)
• procedure for remote identification of individuals
• procedure for transmitting the identification data to the NBU BankID System
• requirements to data protection in the NBU BankID System
• organizational structure of the NBU BankID System.

“In the near future, citizens will have a remote access to not only administrative but also banking and other services. The only thing required is for a user’s bank to connect to the NBU BankID System. Banks, in their turn, will be able to open accounts to individuals in the remote mode. Other system participants – legal entities and non-bank institutions – will be able to start providing services in the remote mode by means of identification via the NBU BankID System, which significantly simplifies the procedure for receiving such services, optimizes companies’ expenses by automating the processes, and saves time for potential buyers,” Volodymyr Nahorniuk, Director of the IT Department, explained the system’s advantages.

According to the information provided by Ukrainian banks as of 1 January 2018, more than 13 million individuals that are bank customers use the remote account servicing, including the use of the Client-Internet-Bank system. In total, the number of individual customers that use banks’ remote account servicing has tripled since 2016.

Thanks to the spreading use of the Client-Internet-Bank system by individuals, the NBU BankID System may become a sufficiently widespread means for the remote identification of individual bank customers, given that banks join the system.

Resolution No. 105 comes into effect on 5 November 2018.

For reference

The NBU project – the Single National System for Remote Identification of Individuals and Legal Entities (called the NBU BankID System since 3 October 2018) – was launched in 2015.

The establishment of the system is aimed at implementing the electronic remote identification of individual customers of Ukrainian banks and providing Ukrainian citizens with the remote access to public, administrative, banking and other services.

The NBU owns the system and regulates the relations between subscribers that are participants of the system. This helps make the system nationwide and provide equal access to all stakeholders, such as banks, public authorities, and companies.

All participants can connect to the NBU BankID System free of charge.

The public services portal now offers more than 70 public services that can be received remotely. Their number will be soon increased to the top 100 popular services.

Currently, Oschadbank and Radabank are connected to the system, multiple banks are at different stages of preparation, testing, and connecting to the system.

Among commercial banks, mobile operators and non-bank financial institutions are the most interested ones.