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FinTechs belonging to this category provide identification services, which are required for most banking services.
Introduction
Attitude of the country towards identification services
National commercial and consumer sentiment towards FinTech identification services is very positive. Banking and finance sectors accept, in some cases, especially relating to online banking services, even require exclusively electronic identification.
With the development of e-government services and online banking services, various means for electronic identification are utilized. The most widely utilized means being the qualified electronic signature, some state organizations are using as an alternative specifically issued identification codes. However, advanced national FinTech solutions provide a full-scale electronic identification service which is also widely utilized even by state institutions.
Legal affairs
Obligations and requirements to provide identification services
The legal framework is mainly contained in Regulation (EU) No 910/2014 and the Electronic Identification Act (EIA). In the event that the identification is provided via qualified electronic signature, theElectronic Document and Electronic Certification Services Act (EDECSA) shall also be complied with.
Administrators of electronic identification and centers or schemes for electronic identification are registered with the Ministry of interior affairs. In case that the identification is provided via a qualified electronic signature, the provider shall be certified by the Communications Regulation Commission (CRC) – the national supervisory authority.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
N/A
Economic conditions
Market size for identification services and biggest companies in this business area
A great number of e-government services are provided upon identification with qualified electronic signature or specifically provided identification codes. Currently, the registered qualified certification service providers are Eurotrust Technologies Jsc., Borika AD, InfoNotari PLC, Information Services Plc. and eDocs Bulgaria EOOD.
Most banking and financial institutions require more complex identification mechanisms provided by most of the registered providers.
Although not a great number, the providers seem to cover consumer’s needs, some of them providing highly innovative identification services and tools.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area
Electronic authentication services are widely utilized in Bulgaria and are becoming a common identification tool in the country. With the European electronic wallet to be implemented in a couple of years, the electronic identification sector appears to be soon undergoing even further development and a wider range of users.