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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 climate towards providing identification services is positive and FINMA amended its Circular Letter 2016/07 on client onboarding via digital channels several times in the recent years in order to take account of technological developments.
Legal affairs
Obligations and requirements to provide identification services
The electronic identification process is regulated for banks and financial intermediaries with view to the AMLA. FINMA has specified in its Circular 2017/07 the due diligence requirements of the anti-money laundering legislation when entering into business relationships via electronic channels (i.e. electronic onboarding). FINMA in particular specifies the requirements for the video- and online-based identification process of new customers of banks and financial intermediaries.
Such services may be outsourced to a third party that needs to have the professional knowledge and technical means for such services. Nevertheless, the bank and financial intermediary remains responsible for the compliance with the relevant anti-money laundering provisions and has to ensure and supervise the third party rendering such services. No specific license requirements are triggered for the third-party service provider.
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
No reliable data are available for the market in Switzerland.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area
N/A.