FinTechs belonging to this category provide identification services, which are required for most banking services.
Attitude of the country towards identification services
In 2021, the Romanian Government passed legislation which regulates the video identification requirements. As such, the entire KYC and onboarding process for the clients can be done remotely and a person does not have to be physically present for his/her identification.
Obligations and requirements to provide identification services
On 24 November 2021, the Authority for the Digitalisation of Romania adopted Decision no. 564/2021 approving the norms on the regulation, recognition, approval, or acceptance of the procedure for the remote identification of persons via video means (the “Norms”). These Norms entered into force on 24 December 2021 and are in line with Regulation (EU) no. 910/2014 on electronic identification and trust services for electronic transactions in the internal market (also known as the “eIDAS Regulation”), laying down the minimum technical and security requirements which identification services providers must comply with prior to providing remote electronic identification services.
Pursuant to these Norms, remote electronic identification services via video means can be carried out only after obtaining the approval issued by the Authority for the Digitalisation of Romania. In order to use video means for the remote identification of clients, the payment services providers, the credit institutions and the non-banking financial institutions, which are registered in Romania, must file a notice with the Authority for the Digitalisation of Romania, together with documents such as: (i) the description of the technical solution and the equipment used in the process of remote identification via video means; (ii) an audit report confirming the compliance with the requirements set out in the Norms; (iii) a third-party civil liability insurance policy, for an amount of EUR 100,000; (iv) the list of the standards recommended by ETSI and the European Commission, pursuant to which the video identification is carried out; and (vi) the legal representative’s statements regarding its policies and procedures required by law. A legal person established and authorised to provide such services in any Member State of the EU wishing to carry out remote identification activities via video means, for Romanian citizens or on the territory of Romania, may carry out this activity under the conditions of the Norms. The services of third parties may also be used in the process of remote identification of persons via video means.
The remote identification of persons via video means is carried out using a system and it requires both identity documents, which are captured using video means, and data obtained from trustworthy and independent sources to the extent that such are available. The remote identification of persons via video means may be carried out by automated verification means, without a human operator, or by verification means using an instructed human operator.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
Market size for identification services and biggest companies in this business area
Considering that Romania has only recently implemented the eIDAS Regulation, at this stage there are no relevant public official statistics regarding these subject matters.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area