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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
The possibility of opening bank accounts via mobile applications or websites appeared on the Polish market a few years ago, but it was only the outbreak of the coronavirus pandemic that triggered the development of innovative identity services and forced companies to adapt their offers to remote reality.
Recently, among the possible forms of verifying a bank account there has been added the possibility of using the mObywatel application, i.e., a free mobile application issued by the Chancellery of the Prime Minister offering mobile versions of documents in the form of digital services. These mobile versions of documents are widely recognised in Poland. In order to use the application, it is required to have a so-called trusted profile. In the application it is possible to "hold" such documents as an ID or a driving license.
Legal affairs
Obligations and requirements to provide identification services
The requirements for identification and verification of the customer and beneficial owner are included in the Anti-Money Laundering and Countering the Financing of Terrorism Act (Ustawa o przeciwdzialaniu praniu pieniedzy oraz finansowaniu terroryzmu) (“AML Act”). In addition, there are also the guidelines of the General Inspector of Financial Information on identifying a customer of an obliged institution and verifying his identity in the absence of his physical presence and the position of the Office of the Financial Supervision Authority (Urzad Komisji Nadzoru Finansowego) on customer identification and verification of his identity in banks and branches of credit institutions based on the video-verification method.
Obligated institutions under AML Act may outsource the process of client identification to other entities, if under a written agreement the entity outsourced to the execution of financial security measures is to be treated as part of the obligated institution.
Outsourcing the execution of financial security measures does not relieve the obliged institution from the responsibility for their application. Therefore, any mistakes made by the third party will burden the obliged institution with administrative liability under the AML Act.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
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Economic conditions
Market size for identification services and biggest companies in this business area
It is difficult to define the market, because as with other FinTech services in Poland, financial institutions often conduct such identification using their own, internal services. Others benefit from the help of external companies such as Identt or Onfido.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area
N/A