Blog: Strong identification to explode in Finland

New Finnish legislation and Finnish Trust Network (FTN) will expand strong identification to more and more online services, where it does not exist today, says Country Manager, Antti Harsunen from Signicat.

“At the moment we are at a run rate of a couple of million authentications per month . We believe that next year at this point we are looking at 3-4 times the figures.”says Harsunen.

“We are aggregating all the major Northern and Central-European electronic identities (eID) and Finland has been important market to our company since 2008.”

Finnish Communications Regulatory Authority (FICORA) is working together with other actors in the coming FTN community how to implement the legislation, which applies from 1st May 2017 onwards. FTN consists of eID providers and aggregators.

The objective for the change in the legislation is to make Finland a more favorable environment for digital services and to adopt strong identification easily. A big change is the aggregation services, which acts as a broker between the online services and the eID provider enabling a one-stop shop for the service providers to access all the eID’s with one agreement.

Until now, the service provider is required to make agreements with all eID providers (10 banks + Mobile operator). It has slowed down the implementations and wider adaptation of the strong eID’s in Finland.

For example, only the government online services have more than 1,000 contracts with the different eID providers!

“With the change of the mode of operation is analogous to the Payment Services Act reform in 2010. Thanks to the amendment, online payments through Payment Service Providers (PSP’s) began to become more common in Finland strongly,” says Harsunen.

From 2009 to 2013, the number of online payments increased by 23.1 million units to 56.3 million units. This means almost 2.5-fold increase in a few years.

Signicat believes that strong authentication is increasing particularly strongly in the future, for example in health care, insurance and real estate sector. Signicat’s traditional ”home industry” has been financial sector. The company’s customers in Finland include Lähi-Tapiola, Fennia, If P & C, DNA, Nordnet, SEB and Santander, as well as a number of European financial sector companies.

The new law requires the identification of the proxy service providers approved by FICORA.

“On May 1st 2017, we are ready to provide mediation service as an official one-stop shop for all means of identification. We have provided technical services in the Finnish market since 2008 and now we can finally offer it also contractually! “, says Harsunen.

News service called Digital Identity Service Provider

”There is a  new service provisioning category called Digital Identity Service Provider (DISP). The DISP’s offer Identity On Demand-services for their customers, regardless of geography or eID. Signicat has extremely strong expertise and background of being a DISP for a decade and we aim to be the leader of the pack also in the future”, sums Harsunen.

Signicat’s Mikael Kemppainen is responsible for Presales in Finland. He believes that aggregating eID’s through a DISP makes perfect sense technically as well. ”Alone in Finland there are 11 integrations to various eID providers, why not use a DISP like us with only one integration? The biggest advantages are achieved in international companies that operate in several markets”.

Contacts in Finland:

Country Manager Antti Harsunen, +358 40 687 9090

Presales executive Mikael Kemppainen, +358 40 701 7774

Posted in Blog.