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LHV enables to open an account by using video identification

5. June 2017

Video identification enables people to become a client at the bank more easily and conveniently. When previously, a client had to visit a bank office and take along their identity document to open an account, then with the help of a new information technology solution, private persons can identify themselves at a distance regardless of their location.

LHV is the first bank in Estonia to enable private persons identify themselves and open an account over video bridge. The bank’s electronic channels have been developed in a way to ensure that it would be as convenient as possible for the client to start using the bank’s services. “Development of modern service channels and services is considered very important in LHV Pank. So far, the video identification was a missing link in the chain, which now ensures our private clients a convenient and flexible process of registering themselves as clients,” commented Andres Kitter, Head of Retail Banking at LHV Pank. “We expect our clients to be entrepreneurial Estonian people, for whom video identification would be above all an convenience service. So far, the process of becoming a client was restricted in its options as it required either a visit to the branch or identification at our partner. Video identification enables to become a client of LHV at any geographical location and the entire process takes up to 15 minutes.”

Video identification is now open to adult Estonian citizens and Estonian residents with a valid residence permit. In order to identify the person, a valid ID Card with an ID Card reader or Mobile ID are necessary. Video identification requires a computer with an Internet connection that has a functioning web camera, microphone and a Chrome, Firefox or Opera web browser.

Technically, identification of a person in the bank’s electronic channel is equal to that performed in real time, however there are some limitations to be considered. The law establishes a monthly user limit of EUR 10,000 to a client who has been identified through video. Settlement with larger amounts assumes physical identification. Neither can a client, identified over video, use investment services or open a corporate account.

“First, we are going to offer video identification to Estonian residents who are interested in LHV’s products, however who so far have not found the time or the opportunity to visit a branch to identify themselves. We will open the service channel later also to e-residents, when we have established the practice, the channel is working and we have considered all the nuances that need attention for offering the service to foreign residents,” Kitter said. When the person has been properly identified, they can remotely take out contracts or use the bank’s advisory services.

The partner of LHV in personal identification is the company Veriff, who is the only company in Estonia specialised in offering the personal identification service. Veriff’s solution is quite invisible for the end-user, since it has been fully integrated to the LHV web environment.

To use video identification, a suitable location or room should be chosen with no unauthorised persons around and where it is possible to fill in the form for opening a current account without distractions and answer the questions of the video interview. The Veriff’s system checks that the client’s PC corresponds to the technical requirements ‒ the web-camera and microphone are available and in a working order. Thereafter the client is directed to a page, where they shall confirm that they agree with forwarding their data to registries, processing the data and recording the video session. First, the client takes a photo of their document – in case of an ID Card, the front and back side, for a passport, the page with the photo. Then, they will take a photo of themselves with the PC camera. At each step, the system will give instructions to the user on how to keep the document within the predetermined frames or how close it should be held from the camera. It is not possible to make a mistake, since all steps of the video identification must also be confirmed. The web solution uses synchronous video recording, in the course of which it reads the details from the document, verifies its validity and analyses whether the person on the photo taken and the document is the same. In addition, the specialists of Veriff check during the interview whether the information submitted by the client is true, the quality of photos corresponds to requirements and compare the information with details of the population register. After a successful video identification, the client should log into LHV Internet Bank to conclude the client agreement.

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