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Thanks to Fips for letting us know that PMac (Lead Designer at Micro Forte) has revealed some more details on Citizen Zero through two posts on the official forum.
The first post talks explains what Factions are and how they come into play in the Citizen Zero world...
"A faction is a named large-scale social actor within the game world of CZ. Each faction has a headquarters, its own set of preferred hangouts and a cadre of NPC members and affiliates that offer PC members various services and rewards. The faction embodies a natural interest group within the social world of the game and behaves accordingly."
You can read about Citizen Zero Factions here.
Another post reveals the level of interactivity that Non Player Characters have in the game. Citizen Zero will contain hundreds of them, each with their own identity and stats, and a great level of interactivity with them. Read about them here!