Licenses for Fintech Formations and Banking Structures

The Fintech industry continues to grow rapidly, with new Fintech companies emerging in 2019 and 2024. Every day a new Fintech appears which competes and does not allow existing players to relax. It is becoming more and more difficult for new Fintech startups. Everyone should have a “zest”, and if you do not stand out, then customers will pass by.

How to become a star among other neobanks? How to get clients while staying profitable? Even before registering a legal structure and obtaining a financial license, founders must develop and approve a clear business model. How will your Fintech project earn, how to lure where your customers are, how you will differ from a large number of original and strong competitors. The first and foremost thing to remember is the obligation to obtain a special license from the regulator. If you have any questions you can visit this website to find out more about Licensed Permission.

Reasons for the popularization of Fintech organizations in the banking sector


The sluggishness and low customer focus of traditional banks paved the way for the success of modern online banks. Some neobanks 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.

In addition to traditional banking services, neobanks also enable their clients to invest and work with cryptocurrency. Total, recipe for a successful neobank:

  • Develop a business model:

– determine the points of profitability, commissions/percentages

– draw up a marketing strategy

– segment target audience, up to a specific group of people

– find pains in the potential geo-market and solve them with the help of products offered

– study the market of local competitors, their strengths and weaknesses

draw up a detailed financial plan.

  • Receive investments (from $ 1 million).
  • As you are working on the legal structure, you must get the necessary licenses. Alternatively, you may choose a partner bank, on the basis of which you will provide financial services.
  • Build a strong energetic team, it is desirable to have a partner with experience in the banking sector.

Will Fintech be able to compete with traditional credit institutions?


Definitely. Moreover, this case of approval in a fairly conservative and regulated banking license market for a Fintech startup is a direct confirmation of this. Regulators are already seeing the benefit for customers from such entry into the banking sector, which means we will see many more examples of this.

The role of Fintechs in the financial sector will strengthen in the coming years. This is due to the transformation of the industry caused by a decrease in the business margins of traditional players and the impact of new technologies. As a result of these processes, barriers to entry of new players into the financial market are eroded. In addition, regulators around the world view Fintech as a tool for developing competition, increasing the availability and quality of financial services, and are introducing mechanisms to support it.

The procedure for obtaining Fintech licenses

To carry out officially permitted and regulated Fintech activities, obtaining an official permit is required. Prepare the following documents.

  1. Description of the proposed business and organization, including business, geographic scope and target customers.
  2. Certified extract from the commercial register.
  3. Information about the office, infrastructure and personnel.
  4. Information about the groups of companies of the applicant, participation and/or other presences (branches or representative offices).
  5. Share capital (structure, par value, etc.).
  6. List of all participants with direct or indirect ownership of 5% or more.
  7. Company diagram showing all direct or indirect participants up to the level of beneficial owner (including information on the amount of participation), broken down by shares of voting rights and capital.
  8. Information about any agreements and other methods of control or significant influence on the applicant.
  9. Persons holding shares in the company must provide a declaration as to whether they own the shares on their own behalf or on behalf of third parties.
  10. Information about the persons entrusted with the management and management of the business.
  11. Information about the management team of the company: data on management team entrusted with the management of the business, including information about the director, deputy director and members of any committees.

Offshore bank license in 2024


The offshore banking business has been relevant for more than half a century. It steadily maintains its position in the global market and is constantly expanding the list of available services. Today offshore banks offer the opening of deposit accounts, currency exchange, money transfers, lending, investing, managing the client’s money resources, corporate governance, etc.

Usually offshore banks provide easy and reliable access to the largest and most attractive offshore jurisdictions in terms of minimizing taxation. In addition, some of their services may be provided on an exclusive basis – in case the client cannot receive them in his/her country. In addition, offshore banks are often attracted by the possibility of placing funds on deposits at higher rates.

Today, offshore banks are called banks, which are either credit institutions or offshore banks with a limited or general banking license.

To register an offshore bank, the following documents are required:

  • completed application for registration;
  • company Statute;
  • memorandum of association or its analogue;
  • an extract from the minutes of the meeting of the founders of the bank;
  • completed questionnaires for all founders and (optionally) bank managers.

The package of documents is sent for consideration to the central bank or other supervising body of a specific jurisdiction, which makes a decision on registration. In some cases, additional documents may be required.

Regardless of the type of license, offshore banks must have a registered office, use the services of a registered agent and secretary. The agent and the secretary are engaged in the fact that, with a certain regularity (usually annually), financial statements, information about the balance sheet, profit and loss, information about the payment of a banking license, and also perform some other duties, are sent to the central bank. The offshore bank’s correspondence is kept by the secretary. There may be no other employees at the bank.

In what case can a banking license be revoked now?


The decision to revoke the license is made by the jurisdiction’s Central Bank. What can cause:

  • it was found that the bank received a license illegally;
  • banking operations for which a permit has been issued are not carried out for a year or more;
  • found inaccurate data in reports;
  • the monthly report is delayed for 15 days or more;
  • the bank conducts operations that are not provided for by the license;
  • the bank does not comply with federal laws;
  • the bank does not comply with the instructions of the regulator, etc.

Make sure your business is in strict compliance with all local financial regulations. We recommend that you seek professional assistance in order to avoid potential problems and hassles with your local regulatory agency.

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