Body
FinTechs belonging to this category provide identification services, which are required for most banking services.
Introduction
Attitude of the country towards identification services
Service providers offering electronic identification must first notify the Finnish Transport and Communications Agency (Traficom) in writing before launching their services. This notification should include a conformity assessment report, demonstrating that their operations comply with the legal standards. Regular audits are mandatory, and these assessments must be conducted at least every two years.
Traficom supervises these services to ensure they are reliable and secure. If a service fails to meet legal requirements, Traficom has the authority to prohibit the provider from offering identification services. Additionally, any changes to the initial notification must be communicated to Traficom, as well as any significant security disturbances.
Providers also have to engage in a trust network, forming agreements with identification broker services to facilitate customer identification in electronic services. Fees associated with registration and supervision are applicable, ensuring a structured framework for operation The National Cyber Security Centre Finland (NCSCFI) at Traficom monitors and supervises compliance with the requirements, issues more detailed regulations and maintains a list of identification service providers who meet the requirements.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
The Ministry of Transport and Communications is responsible for the general guidance and development of strong electronic identification. The Ministry of Finance is responsible for guiding the provision of electronic services by the public administration. The Digital and Population Data Services Agency is responsible for the Suomi.fi identification used in public services.
The Data Protection Ombudsman supervises compliance with the personal data provisions of the Act on Strong Electronic Identification and Electronic Trust Services. The Financial Supervisory Authority supervises strong identification in accordance with the Payment Services Act. The Finnish Competition and Consumer Authority supervises consumer protection and the effectiveness of the market and competition. If necessary, Traficom and the Data Protection Ombudsman collaborate with the Financial Supervisory Authority and the Finnish Competition and Consumer Authority when performing supervisory tasks.
Economic conditions
Market size for identification services and biggest companies in this business area
According to the register maintained by Traficom, there are currently 17 registered identification service providers in Finland. Among the registered companies are Finland's largest banks and major telecom operators.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area
N/A