Nothing personal: a quarter of MFOs may close due to biometrics loans.
About 25% of MFOs are at risk of leaving the market, Izvestia found out. They will not be able to comply with the new requirements of the law. Since March 1, in order to obtain loans online from microfinance companies, Russians are required to verify their identity using biometrics, a measure introduced to protect them from fraudsters. However, not all players in the MFI market are ready for these changes, the introduction of the service costs at least 30 million rubles. Because of this, small companies may close down or be absorbed by large participants. Experts also see the risk of some clients going to illegal creditors. Why Russians are afraid to take biometrics and how well—founded their fears are - in the Izvestia article.
How many MFOs can close due to mandatory biometrics
About a quarter of microfinance organizations in the coming years are at risk of ceasing operations after the introduction of mandatory biometric identification for their clients, market participants interviewed by Izvestia believe.
Starting from March 1, Russians will need to verify their identity through the Unified Biometric System (UBS) to apply for an online loan of up to 1 million rubles from microfinance companies.
MFIs include microfinance companies (IFC) and micro-credit companies (MCCS). The former should have a capital of 70 million rubles or more. For the latter, the requirements are lower — as a rule, from 5 million rubles. However, they have the right to issue only loans in the amount of up to 500 thousand rubles. Biometrics will become mandatory for them only in March 2027.
After the introduction of new measures, it will no longer be possible to receive money from the IFC only based on passport data. This will tie the hands of scammers — they will not be able to apply for micro-loans to their victims without their knowledge.
— MFIs work online more often than others, they issue loans quickly and without personal contact, which means they remain the main target for stealing individual data and making loans to front persons. Biometrics can dramatically reduce such risks," said Vladimir Chernov, analyst at Freedom Finance Global.
The microfinance market has long needed a systemic tool against theft schemes from Russians, said Igor Rastorguev, a leading analyst at AMarkets. For example, in the first nine months of 2025, complaints against MFIs increased by 10%, and a significant part of them were related specifically to fraud cases. Connecting the market to the EBS should close this problem.
However, it is likely that some MFIs will not have time to implement the service by March 1, 2026, Vladimir Chernov believes. According to Expert RA, the market is not fully ready for the launch of biometric identification, so many players will try to delay the moment of transition to the new rules for themselves. There is such an opportunity — the IFC can change its status to a micro-credit company (MCC) and not deal with this issue for another year.
How much does biometric identification cost for MFIs
The cost of launching biometric identification is estimated at at least 30 million rubles, said Oleg Berdasov, Director of Risk Management at IFC MigCredit. According to him, about 30% of microfinance companies are small players with an annual turnover of less than 50 million rubles, and such expenses are really noticeable for them. Artem Bykov, CEO of Moneyman, stressed that up to a third of existing MFIs may close by the end of 2028.
At the same time, the Center for Biometric Technologies (CBT) told Izvestia that the cost of direct integration with the EBS is about 15-25 million rubles. This option is in demand by large MFIs, however, there is an alternative, more accessible scenario for small market players. They can implement a delegated identification service in which the identity of borrowers will be confirmed by another organization.
In this case, the MFO pays only for identification services from the bank or the operator of the financial platform, which is already integrated with the EBS, the CBT emphasized. The price will include the identity verification service itself — for MFIs, it costs 4-19 rubles per request. Tariffs at the request of the market were reduced three to six times, because previously the cost of the service cost 25.5–60 rubles per request, the organization added. Currently, the cost of identity verification is several times lower than the price of a request to scoring bureaus that MFIs regularly contact.
Nevertheless, for small players, the difficulties with changing internal processes can still be noticeable, said Ekaterina Kazak, CEO of Cyberbird Fintech Group. Biometric identity verification requires an overhaul of the customer's path, IT systems, and control procedures, which means new costs and risks for the business.
The main difficulties may begin in the spring of 2027, when biometrics will become mandatory for the entire market, Ekaterina Kazak emphasized. At this point, consolidation may accelerate, and the number of weak players will decrease significantly. At least 15% of companies may leave the market by the end of next year. And the final share may be even higher, said Maxim Paschenko, CEO of IFC Joy Money.
In addition, smaller market players may be pressured by a decrease in demand for micro-loans, which is expected after the market transitions to new standards, said Artem Bykov, CEO of Moneyman. According to him, it may fall by an average of 50-60%, but after a year it should recover as the population's willingness to take biometrics increases.
Market participants fear that some of the clients of MFIs may go to the shadow sector and turn to illegal creditors who do not require identification, Maxim Paschenko, CEO of IFC Joy Money, warned. According to market estimates, 1-2 million customers may enter the gray zone.
There is a risk that people will start looking for quick and not always legal ways to get money, the press service of SRO MIR confirmed.
Because of all this, up to 30-35% of the current number of MFOs may leave the market by the end of 2028, says Artem Bykov, CEO of Moneyman.
Why Russians are in no hurry to take biometrics
The CBT clarified that the identification service through the EBS is available to 50 million users in a simplified manner, which is much more than the number of MFIs clients (13-15 million). However, the Mir SRO stressed that not all of them have data in the EBS, and a significant part of borrowers will have to submit biometrics in order to gain access to microcredit.
The main deterrent here is the willingness of customers themselves to donate biometrics, explained Andrey Ponomarev, CEO of Webbankir. According to surveys, about 20% of borrowers have already done this, another 45% are generally ready, and the rest are still in doubt. According to him, the future of online lending largely depends on whether people can be convinced of the safety and convenience of this technology.
At the same time, the demand for micro-loans remains high, Webbankir clarified. According to the company's statistics, the number of applications in the fourth quarter of 2025 increased by 35% year-on-year, and almost doubled in two years. This means that against the background of new requirements, clients of MFIs can really start actively submitting biometric data.
Fears around biometrics are largely related to the past experience of data leaks, said Igor Rastorguev, a leading analyst at AMarkets. However, the EBS is protected by high standards, and the data is stored in encrypted form separately from personal data.
"During the entire period of operation of the EBS, there has not been a single leak of biometric data of customers," the press service of the CBT clarified.
The prospects of biometrics go far beyond microloans. The technology is already being used in banks and is gradually spreading to insurance, notary services and other areas, said Igor Rastorguev from AMarkets. In the future, new biometric services may appear in carsharing, rental housing, marketplaces and other areas where there is a risk of identity substitution, Vladimir Chernov added.
In general, the introduction of biometrics looks like a useful and inevitable step, said Vadim Krapp from Expert RA. It increases transparency, reduces fraud risks and improves the quality of portfolios, although it makes the market more concentrated. In general, the field of MFIs is well suited for testing the biometrics identity verification system in order to further extend it to other segments of the financial market, the expert concluded.
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