Possibility of electronic video identification for the purpose of concluding credit transactions with new clients to be available soon

Banka Slovenije has taken heed of the initiative of banks and other lenders with regard to the possibility of expanding the remote conclusion of credit transactions to include clients who are not their customers. To date, that was only possible with existing clients.

Banka Slovenije assesses that electronic video identification could, in the presence of an additional element of verification, be permitted for the needs of accessing the SISBON system during the conclusion of credit transactions. In practice, this means that an individual can conclude a credit transaction with a bank or other lender with whom they do not have a previous business relationship, without a personal visit. 

Banka Slovenije is the operator of the SISBON system for exchanging information regarding the indebtedness of individuals. Members of the system (banks, savings banks, leasing companies and corporates) submit and access data regarding the indebtedness of clients, while other lenders do not submit data to the system, but have limited access to data regarding clients. The system also allows individuals to access data regarding their indebtedness.

Banks and other lenders have sent Banka Slovenije numerous initiatives to change the procedure for the unambiguous identification of potential clients for the needs of accessing an individual’s data in the SISBON system during the conclusion of a credit transaction. Those initiatives relate specifically to the permissibility of electronic video identification as an appropriate procedure for the unambiguous identification of an individual. Banks and other lenders would in particular like to have the possibility of expanding the remote conclusion of credit transactions to include clients who are not their customers.

Banka Slovenije searched for a potential solution for the introduction of electronic video identification that would preserve the legally required standard of reliability of the electronic identification of an individual. Electronic video identification could be used for the verification of the identity of an individual (new client) for the purpose of accessing SISBON, provided that an additional element of verification is ensured. A new client ensures that additional element by transferring funds from the current account or another payment instrument of a SISBON member at which they were already identified either personally via highly reliable identification means or through the use of a digital certificate of a Slovenian issuer. Those funds are transferred to the account of the bank or other lender at which they wish to raise a loan. Banks and other lenders must ensure the confirmation of the previous identification of a client in a way that facilitates subsequent verification in supervisory procedures.

Banka Slovenije leaves the decision on how the additional element for verifying the identification of an individual will be implemented in practice to banks and other lenders.

Banka Slovenije also explains that this new feature will enter into force following the completion of formal procedures and publication in the Official Gazette. It is a transitional solution until the adoption of the Electronic Identification and Trust Services Act, which will comprehensively govern the area of access to the electronic services of public-sector bodies. The aforementioned act is being drafted by the Ministry of Public Administration.