Licensed Permission for Banking Institutions and Fintech Structures

From the very beginning, the Fintech industry participants never tired of reminding us: “We are not financial institutions.” Unburdened by numerous regulatory requirements, unlike banks and other financial institutions, Fintech companies are able to establish strong relationships with customers and quickly navigate market trends, radically changing the way traditional market players do business.

For decades, new financial organizations have found it complicated to enter the industry. Times change. Fintech shook up the financial industry. Innovative financial structures that are first in the world to introduce technology are finding ways to bypass the old guard in a variety of ways. If you want to learn more about how to develop marketing for B2B Fintech organizations, you are in the right place. For entrepreneurial groups, this has opened doors that have been closed to them for decades. For incumbent operators, this means investing in new ways of doing business and other ways of marketing.

In recent years, the big word Fintech has also found its way into political vocabulary. Fintechs are companies that compete with established financial providers with modern, innovative and mostly digital business ideas and flexible corporate structures. One of the obstacles in the way of many of these companies is special sector demands. These rules are so comprehensive that compliance with them leads to significant time and material costs for firms involved, which already creates problems for established facilities and participants in this market. If you have any questions you can visit this website to find out more about Licensed Permission.

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Ensuring cooperation with financial supervision


Some examples show that it is sometimes very complicated to understand the regulatory “jungle” of the financial segment. However, violations of such regulations can be sanctioned by financial supervisors in the form of large fines, and in some cases by law enforcement agencies in the form of imprisonment. Therefore, before concluding the relevant agreements, you must carefully study them.

Old brands have built their reputations and businesses on relationships. If your company has been banking with someone for two decades, what’s the impetus for change? Marketing for B2B Fintech organizations should provide the impetus to grab the attention of prospective customers and provide incentives to get decision makers to think about change. In addition to traditional banking services, neobanks also enable their clients to invest and work with cryptocurrency. Most neobanks also quickly recruited their clients through the referral program.

List of new requirements for companies operating in the industry


The sluggishness and low customer focus of traditional banks paved the way for the success of modern online banks. Some non banks chose a very narrow target audience, from which banks “fenced off” – clients with low solvency and lack of stable earnings. Neobanks are undoubtedly the engines of progress in the banking system. For them, working entirely online” is no longer a novelty. Now we are working on introducing artificial intelligence into the operating system of neobanks and “moving” the banking application to messengers.

Recent market developments suggest that the Fintech segment may face a blurring of boundaries in the future, with some Fintech companies already obtaining banking licenses or considering doing so. This allows them to expand their scope of competition and avoid the need to comply with disparate regulatory demands of different markets in which they operate. Banking establishments are looking for partnerships with Fintech firms, and some are already working with them to take advantage of possibilities offered by innovation and meet the needs of tech-savvy consumers.

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The most important requirements for Fintech firms to obtain a license permit:

  • fully paid up capital (at least the minimum), the amount of which is 3% of the received government deposits;
  • a description of the proposed activity and organization, including the proposed business, geographic coverage and target clientele;
  • information about the applicant’s group of companies (branches or representative offices);
  • a list of all participants with direct or indirect ownership of 5% or more (up to the level of beneficial owner with voting rights and equity interests);
  • the composition of the governing body entrusted with the management of the business, including details of the chairman, deputy chairman, and members of any committees;
  • information on the composition, organization and powers of the Directors;
  • detailed description of business activities and processes;
  • business plan, including budget (balance sheet, income statement) for the next three financial years with optimistic, realistic and pessimistic scenarios;
  • charter, organizational regulations that are adapted to business activities;
  • organization and company regulations/policies related to risk management, compliance and internal control (including anti-money laundering policies);
  • a description of how public deposits are kept (separate from the company’s own funds);
  • in addition, if the applicant is part of a financial group: the organizational structure of the group with information on existing or planned licenses issued in accordance with the legislation on the financial market.

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As you can see, the conditions are quite acceptable with relatively short terms for obtaining a license and an absolutely accepted price of services. Only thing we would need to pay more attention to is the fact that “time is money”, namely, before applying for a license, it is necessary to properly prepare and, as high quality as possible, draw up the application itself, because the longer it stays in the supervisory authority, the more you will have to pay for its processing.

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It is recommended to all entrepreneurs to study all areas of activity properly, draw up and fill out an application in as much detail as possible, and work out the maximum possible number of additional questions from FINMA in order to save time in the future.

In addition, it is very desirable and will come in handy that you familiarize yourself with the procedure for submitting and collecting documents, with the terms of consideration and registration of the application, as well as carefully study all the requirements and the latest amendments to them that were made by the local regulator.