FinTechs belonging to this category provide identification services, which are required for most banking services.
Attitude of the country towards identification services
There are no specific reservations related to such services. Compliance with data privacy law especially in light of the EU General Data Protection Regulation (GDPR) is considered crucial with regard to such services
Obligations and requirements to provide identification services
Qualified trust service providers, certified email service providers and digital identity providers shall be enrolled with the National Digital Agency (Agenzia per l’Italia Digitale – AGID).
To this extent, they shall comply with certain requirements set out under both the Italian Digital Public Administration Code (Legislative Decree no. 82 of 7 March 2005 as lastly amended in 2017 – CAD) and the EU e-IDAS Regulation (EU Regulation no. 910/2014 on electronic identification and trust services for electronic transactions in the internal market). For instance, qualified service providers shall employ staff and subcontractors with the necessary expertise and qualifications, and who have received appropriate training regarding security and personal data protection rules.
In this regard, Section 29 of the CAD requires qualified trust service providers, certified email service providers and digital identity providers to have a minimum initial capital which could vary up to EUR 5 million depending on the provided services. The minimum initial capital requirements for qualified trust service providers have been recently repealed, with effect from the adoption of a presidential decree detailing the requirements that shall be complied with by such providers.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
Qualified trust services providers also may be registered in other EU States.
Market size for identification services and biggest companies in this business area
A public system for digital identities has been established by the Italian legislator and has recently been implemented by the Italian government.
In this context, businesses certified with AGID can provide users with digital identities that can be used by such users to obtain digital services requiring identification, including (but not limited to) several services provided by public administrations. There are currently nine (9) registered identity providers operating in the market
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area