Although the identification service market in China still remains to rely on traditional identification methods, intelligent identification is becoming more and more popular and acceptable to ordinary people.
Currently, the FinTechs being engaged in online identification technology should be a company incorporated in China and obtain the business license with the proper business scope. Other than the business license, it is not required to obtain further licenses for providing such services to banks.
Notwithstanding the above, in practice, many FinTechs in this area are actually engaged in producing the encryption products before entering into this area. Manufacturing or selling encryption products are subject to the license issued by the encryption authority in China. If the identification services are provided through specific encryption products, such producers of encryption products shall obtain an encryption license. However, if the services are provided online to the banks, no specific license is required, except the business license.
The market for identification services was about 700 million RMB measured by revenues in 2015, among which biometric identification was over 200 million RMB.
There are only a few companies providing identification services online.
Big Internet Service Providers in China, including Alibaba, Tencent, Baidu and JD, all have the identification sector and are trying to develop identification technology.
In general, currently, there are no specific rules on identification services. Most regulations regarding identification services focus on cyphers, dynamic passwords and other traditional ways of identification. There have not been any regulations related to biometric identification yet.
Norah Yinuo Zhang